Jayaprakash Narayan's Blog

Lack-luster budget: Dr. JP

2009-07-06T17:31:00.001+05:30

The Lok Satta Party today described the Union budget as lack luster. There is little to write home about it barring the Government’s outlay crossing the Rs.10 lakh crore mark.

Talking to the media, Lok Satta Party President Dr. Jayaprakash Narayan said that Union Finance Minister Pranab Mukherjee had formulated the budget with an eye on the elections in a few States in the next few months. He allowed the golden opportunity to craft a historic budget in the context of a global recession and a stable government and steady growth in the Indian economy in the country to slip through his fingers.

Dr. JP pointed out that no bold attempt had been made to create either employment opportunities or boost agricultural growth since the focus was on winning the upcoming elections in States. Since 70 percent of farmers are outside the institutional fold, they are not going to benefit from the increase in agricultural loans.

Dr. JP said: “Even now, the allocation for healthcare in the country remained where it was for decades – only one percent of the GDP. Educational allocations still remain at 3.5 percent of the GDP. There is no concerted attempt to eliminate poverty. Instead, there is a conscious attempt to give short-term sops to the poor to use them as vote banks, while perpetuating poverty.

“The revenue deficit also has reached 4.8 percent of the GDP or about Rs.215,000 crore. That means, the Government is spending only for day-to-day expenditure about Rs.600 crore more than its income every single day. The interest burden has exceeded Rs.300,000 crore, and this year’s additional debt alone is Rs.400,000 crore. If the States’ deficits are added, the combined fiscal deficit will probably reach 12 pre percent of the GDP. There is no road map to reduce the fiscal deficit. As a result, the younger generation is going to inherit a crushing burden of debt on account of the Governments’ profligacy.”

Cooperative farming will end up In disaster, warns Dr. JP

2009-06-29T21:23:00.000+05:30

The cooperative or collective farming envisaged by the Andhra Pradesh Government to step up both productivity and production will end up in a disaster, Lok Satta Party President Dr. Jayaprakash Narayan warned today. “The remedy proposed is worse than the disease.”

Dr. JP, who took part in an all-party meeting convened by the Chief Minister on cooperative farming earlier in the day, said farming in Andhra Pradesh suffered from a host of ailments all of which had little to do with the size of farms. “Productivity and production in the farm sector have been low not because the land holdings are small but because farmers do not have access to technology.”

He pointed out that “technology is scale neutral.” Farmers irrespective of the size of their holdings embrace new technologies if they are available as is evident from the fact that 80 percent of cotton farmers have taken to the pest resistant BT cotton variety all over the country. The farmers are helpless either when modern technology is not available or they have no access. Although there are cane harvesters all over the world, they are not available in Andhra Pradesh.

Dr. JP highlighted that only eight percent of seeds used by farmers are certified and four percent of their soils tested. On both counts, the farmer is a loser. The problem, therefore, lay with the Government and not the farmer in making new technologies accessible to him.

Dr. JP told a media meeting that the Government’s advocacy of large, consolidated holdings in the name of cooperative or collective farming for precision farming is untenable. Precision farming involves control of temperature, moisture etc in green houses as in the raising of tulips in the Netherlands. The holdings involved are all small and not at all large.

Dr. JP pointed out that all over the country productivity in small farms is higher than in large farms because the small farmer invests his labor of love, besides other inputs, to reap higher harvests. He does not include his labor in costing. If cooperative farming is introduced, the small farmer becomes a wage earner and loses his dignity. As he charges for his labor, the cost of production in cooperative farming is bound to be higher.

Dr. JP said the real problem lay in the absence of breakthroughs in technologies after the Green Revolution of the 1960s. The Government could address some of the problems like absence of dryers and threshing platforms.

“Nowhere in the world large-scale farming has been a success. In India itself, we have 14 Central State Farms spread over tens of thousands of acres. But all the farms run by the Government of India are bankrupt. The erstwhile Soviet Union paid a very high price for promoting collective farming. In India, cooperatives have succeeded where they are engaged in processing and marketing and not in primary production. Milk cooperatives are a good example. Even in dairy cooperatives whenever the Government controlled them as in Kadapa and Chittoor, the dairies went bankrupt whereas farmer-controlled processing cooperatives are doing well.”

Dr. JP did not rest with rubbishing the Government proposal. He suggested alternatives for stepping up productivity and production. He wanted the Government to enact a law as in Punjab to promote consolidation of fragmented holdings. The present monstrous tenancy law has to be liberalized. Although two-thirds of land holdings in the State are in the hands of tenants, owners do not register them for fear of losing ownership.

Once tenancy is brought on record, the tenant can access bank credit and other inputs. A liberalized tenancy law will also facilitate contract farming which is in the interest of the farmer as also the country. For instance, sugarcane and oil palm are raised as a contract between processing mills and farmers. In a similar fashion, paper producers enter into an understanding with farmers for supply of softwood in Andhra Pradesh, and vegetable producers for supply of raw material to processing industry in Punjab.

Dr. JP wanted the Government to focus on value addition, warehousing and marketing. The marketing societies should be under the control of farmers, and all restrictions on marketing should be removed.

2014 belongs to the Lok Satta, Asserts Dr. JP

2009-06-18T20:58:00.000+05:30

If the Lok Satta Party sticks to its values without any compromise, the year 2014 definitely belongs to it, asserted party President Dr. Jayaprakash Narayan here today. “And the political calendar too favors the fledgling party”.

Addressing party people who contested the 2009 elections, Dr. JP said the Lok Satta is here to stay and determined to fight for transformation in people’s lives, however arduous struggle is going to be. “People are ready for real change and it will happen in 2014 (when the Assembly elections are due again) going by the winds of change blowing across the State.

Party spokesmen V. Laxman Balaji and Mohd. Ishaq Khan gave this information to the media today.

Although vast numbers of people admired the party in the 2009 elections, they stopped short of endorsing it. “The months and years to come are a testing time for us. People will keenly watch whether the Lok Satta sticks to its values or compromises on them to garner a few seats in elections, like other parties.”

He recalled that a survey conducted by a TV channel immediately after the 2009 elections were out showed that 96 percent of the respondents viewed the Lok Satta Party as an alternative to both the Congress and the TDP, mirroring the high hopes the people had of the Lok Satta.

Dr. JP pointed out that the political calendar too favored the Lok Satta in that elections scheduled for various local bodies would provide a golden opportunity to mobilize public support. After elections to the Greater Hyderabad Municipal Corporation, elections to municipal councils will take place in 135 towns accounting for almost 150 Assembly constituencies. Thereafter, elections to panchayati raj bodies would take place. If the party made good use of the local body elections, facing the 2014 elections would be an easy task, said Dr. JP.

Dr. JP reiterated that none need to make great sacrifices to build up the party. It was enough if they devoted a little part of their time, increased party membership and invited and encouraged competent people to take up leadership. He wished politicians in Andhra Pradesh had emulated Prime Minister Dr. Manmohan Singh and leader of the Opposition L. K. Advani who apologized to each other for election-eve bitter exchanges and agreed to let bygones be bygones.

Resource constraints stymied Lok Satta In elections: Dr. JP

2009-06-13T21:22:00.000+05:30

Had the Lok Satta had Rs.40 crore as its election fund, it would have emerged as a significant player in Andhra Pradesh politics today, Lok Satta Party President Dr. Jayaprakash Narayan said today.

Addressing a media meet, at which he released a statement of donations received and expenditure incurred by his party during the elections to the Assembly and the Lok Satta, Dr. JP said the party was handicapped by paucity of resources in engendering confidence about its fighting mettle. Although the party succeeded in taking its message to the public, it could not whip up a wind in its favor because of its low-key campaign.

Dr. JP pointed out that a political party cannot function without resources. “Honest politics needs honest money. The party accepted donations only by cheque, accounted for every rupee it spent and placed the facts before the public.”

Dr. JP called upon leaders of competence and integrity from all walks of life to make the Lok Satta their forum for bettering people’s lives.

The party was introducing executive membership with a view to making the party self-sustaining in its day-to-day operations. An executive member has to pay Rs.1000 as fees per year or Rs.100 per month as a token of his owning the party.

On the occasion of 2009 elections, the party received contributions amounting to Rs.3,23,73.900. It incurred a total expenditure of Rs.3,16,01,095 including Rs.2,25,83,670 on electronic and print media. The contributions included those from NRIs. Dr. JP spent a total of Rs.4,92,326 on contesting from Kukatpally to the Assembly.

In reply to a question, Dr. JP said the three traditional parties in Andhra Pradesh would have spent Rs.4000 crore, most of it on inducing voters with cash and liquor, during the elections.

Dr. JP said the Lok Satta would contest the GHMC elections with a clear-cut and practicable agenda. The five promises the party is making are:

Supply of safe drinking water in all colonies and bastis which do not have the facility now with the installation of reverse osmosis plants
Implementing a citizen’s charter under which failure to attend to a public grievance in a specified period invites penalty on the GHMC
Identification and resolution of problems basti-colony wise and implementation of a division agenda in three phases – 100 days, one year and five years respectively.
Devolution of GHMC funds at the rate of Rs.2 crore for each division every year, so that an elected divisional committee could spend it on attending to pressing local problems
Integration of the functioning of the GHMC, Metrowater and Urban Development Authority

“We have the clarity of purpose, determination, competence and integrity to deliver on our promises. We can make Hyderabad a truly get city worthy of our heritage. Right now, the city is on the verge of paralysis with poor water supply, inadequate drainage and sewerage, and nightmarish traffic. This election should serve as a wake up call, and all youth, women, middle classes and the poor should join hands to transform our city”, said Dr. JP.

In reply to a question, Dr. JP said his party would consider an alliance with other parties in the GHMC elections provided there is total agreement on the agenda for the city, and there is willingness to practice ethical politics.

Mr. V. Vijayender Reddy, Lok Satta Secretary and Mr. Nandipeta Ravinder, President, Greater Hyderabad Lok Satta unit, flanked Dr. JP.

Amend anti corruption law, Dr. JP suggests to CM

2009-06-12T20:39:00.000+05:30

Lok Satta Party President Dr. Jayaprakash Narayan has in a letter asked Chief Minister Dr. Y. S. Rajasekhara Reddy to translate his intent to put an end to corruption by amending the Prevention of Corruption Act, which suffered from many lacunae.

Releasing copies of Dr. JP’s letter, party spokesmen Dr. P. Bhaskara Rao and G. Raja Reddy told the media that Dr. JP had sent copies of a draft Bill to amend the Act to the Speaker of the Assembly, Chairman of the Legislative Council, Chief Minister, Ministers for Law and Legislative Affairs, and leaders of the TDP, PRP, TRS, MIM, CPI, BJP and CPM in the legislature.

Pointing out that there are now six agencies dealing with public servants’ acts of corruption, Dr. JP said all of their functions should be integrated so that the guilty cannot go unscathed. He suggested that the Anti Corruption Bureau should be made autonomous and brought under the supervision of the Lok Ayukta. He wanted legislators and other elected public representatives to be brought under the ambit of the Prevention of Corruption Act.

Dr. JP requested the Chief Minister to convene an all-party conference to discuss measures to eradicate corruption.

Referring to the Intermediate Board’s suspension of principals for low percentage of passes, the party spokesmen said such actions would not serve the purpose. A solution lay in creation of basic amenities in colleges, appointment of more teaching staff and improvement in teaching methods.

Let us restore dignity in politics: Dr. JP

2009-05-25T11:13:00.000+05:30

“Now that the elections are over and a government is firmly in place, political parties should return to the path of civility in public discourse, rise above partisan considerations, and work collectively to fulfill people’s aspirations.”

Making this appeal at a media conference, Lok Satta Party President Dr. Jayaprakash Narayan said that perhaps in the heat of the no-holds-barred and bitter electioneering, most political parties and politicians indulged in character assassination in mutual mud-slinging unbecoming of their stature. “Genuine differences among political parties are natural in a democracy. One should learn to disagree without being disagreeable. Politics is all about reconciling conflicting interests.”

The Lok Satta President, who attended the swearing in of Dr. Y. S. Rajasekhara Reddy as Chief Minister, regretted that top leaders of the Opposition parties chose to keep away from the function. “Whether we like it or not, Dr. YSR is the Chief Minister for the entire State and not merely for Congress people who elected his party to power.” The Government too did not cover itself with glory by allowing over-enthusiastic ruling party people to turn the solemn swearing-in ceremony into a party affair. The ruling party must realize that the government belongs to all people, and must treat all sections equally without favour or malice. The healthy tradition of opposition leaders participating in all state functions and swearing-in ceremonies at the national level should be followed in the state.

Commenting on the election results, Dr. JP said that the Lok Satta had failed to convert the unparalleled support it enjoyed into votes. “We accept the verdict in all humility and refuse to look for alibis or blame others for our performance. We pledge ourselves to strengthen the party and engender confidence among the public that together we can transform society.”

He added, “The perception is widespread that the year 2014 belongs to the Lok Satta, not because it is powerful but because it is articulating people’s aspirations, and emerged as on authentic platform for citizen’s Political parties participation”.

Dr. JP said the 2009 elections were marked by unprecedented vote buying, liquor distribution on a large scale, intense caste polarization and the vicious propaganda that a vote to an ethical party like the Lok Satta would be a wasted vote.” Yet the people by and large displayed extraordinary maturity by not succumbing to caste Talibans, lucrative and irresistible freebies and money and liquor.

Listing out the challenges before the Government, Dr. JP said it had to focus on providing basic amenities to citizens on a war footing. They included supply of safe drinking water, drainage and uninterrupted power supply, road and public transport facilities to every habitation. The Government had to focus on providing livelihood skills and jobs to lakhs of educated and semi-educated young people. Instead of coming up with short-term palliatives, the Government had to work out a comprehensive medium and long-term strategy to eradicate poverty.

Pointing out that the innovative solutions were available to mitigate poverty, he instanced how with the introduction of solar LED lamps to light up homes, the Government could save over Rs.20,000 crore annually on kerosene subsidy all over the country. The country could save precious foreign exchange, save people from health hazards and prevent environmental pollution if LED lamps were distributed free of cost to every BPL family.

Dr. JP underlined the need for eliminating waste and corruption at a time the State is going through an economic slowdown. The conditions will worsen in the months to go as the Government’s expenditure commitments grossly exceed the State Government’s anticipated tax and non-tax receipts and devolution of resources from the Government of India. “High cost and low impact projects like the Pranahita-Chevella lift irrigation scheme have to give way to low cost and high impact projects. People of Telangana can be served far better at a lower cost, by taking up alternative, low cost projects”.

On corruption, Dr. JP said the ruling party and its captains should set an example by pursuing a path of rectitude. “The Ganga cannot remain pure and sacred if the Gangotri itself is polluted, to quote Mr. A. B. Vajpayee.” He commented that Andhra Pradesh had some of the finest officers and employees if political leaders inspired them by example, the State could turn a new leaf in its history.”

Dr. JP wanted the Government to empower people without further delay through decentralization of powers, resources and personnel. In addition, the Government should make available a per capita grant of Rs.1000 to every panchayat and municipality/corporation since they alone are competent to identify and fulfill people’s compelling needs. “Citizens cannot be treated as mere vote banks. People’s participation between elections is the essence of democracy. Only when citizens are empowered and all governance institutions revolve around people can fulfill our potential”, Dr. JP asserted.

Referring to a proposal to collect a higher cess on liquor to partly fund ‘Arogyasri’, Dr. JP regretted that the Government was oblivious to the apparent contradiction. The Government was solely responsible for the impairment of livelihood and health of lakhs of people poor in that it encouraged unbridled liquor consumption to maximize State revenue. “As if to salve its conscience, it promotes ‘Agogyasri’ in the name of going to the rescue of the same poor people.” The Lok Satta would like the Government to abandon its policy of auctioning liquor shops to the highest bidder. A liquor dealer who obtains the liquor outlet license at astronomical cost will try to boost his sales by promoting belt shops. Instead, the Government itself should run a limited number of liquor shops as in Delhi with a view to curbing burgeoning liquor consumption. “Andhra Pradesh has the dubious distinction of being among the top liquor consuming States in the country.”

Lok Satta Party Launching 'Surajya' Movement

2008-03-17T11:54:00.000+05:30

The Lok Satta Party is spearheading a citizens' movement for Surajya beginning from Andhra Pradesh on March 23, 2008 (77th death anniversary of Shaheed Bhagat Singh).

Announcing this here today, Lok Satta Party President Dr. Jayaprakash Narayan (Dr. JP) said that while the Swaraj movement sought freedom from colonial rule, Surajya movement aims to free citizens from the chains of corrupt and distorted rule. While Swaraj movement achieved its objectives through non-violence and non-cooperation, Surajya movement will be based on the power of the vote.

Dr. JP said the Swaraj movement has yielded us self-governance and since independence, significant progress has undoubtedly been made across several fields. "However, the present political and governance culture has reduced this hard-earned Swaraj to Swaha-raj where public good has become merely incidental to the fulfillment of vested interests of a distorted political culture."

Dr. JP said that the nation today faced several critical challenges. They include:

Eliminating the pervasive and monumental corruption from our society and replacing the notoriously kleptocratic governance culture with a truly citizen-centric one
Establishing a political culture that is free from criminals and political dynasties
Ensuring equitable access to quality education, healthcare, and employment opportunities to every citizen irrespective of his or her position at birth
Eliminating societal discrimination based on caste and creed, and providing genuine opportunities for vertical growth to all sections of society
Ensuring true devolution of power to local governments, and empowerment of citizens
Ensuring access to speedy and affordable justice to all sections of society and restoring the rule of law

Dr. JP said: "There is a pressing need to build a credible, just, and equitable society that provides dignity, justice, and opportunities for all."

A number of renowned social activists, including Magasasy Award winners, are taking part in the Surajya movement. They include:

:: Anna Hazare
:: Ramesh Raamanathan (Janagraha)
:: Madhu Kishwar (Editor, Manushi)
:: Desikan (Catalyst Trust)
:: Sandeep Pandey
:: M. V. Devasahayam
:: T. N. Seshan
:: Shiv Khera
:: Julius Rebero
:: Arvind Khejriwal

Dr. JP Calls Upon the Brightest to Enter Politics

2008-03-14T11:25:00.000+05:30

Lok Satta Party President Dr. Jayaprakash Narayan (Dr. JP) has underlined the need for ensuring that the best of people enter politics since never before in India’s history the opportunities for resolving people’s problems are as many as they are today. “There are no problems, which are really intractable any longer, except old age and death, and perhaps taxes. In fact, most problems are amenable to simple, practical solutions, if only we leverage our strengths”.

Paraphrasing Charles Dickens, Dr. JP has said it is the best of times since we have the means and technology at our disposal to resolve people’s problems and it is the worst of times since we do not have many people who enter public office with competence, commitment, and integrity and with a passion for public service.

Addressing a gathering of software professionals and others on ‘Leadership in 21st Century India – Opportunities and Challenges’, Dr. JP today bemoaned that the conditions in India are so rotten that an eminent person like Dr. Manmohan Singh, roundly defeated in the 1999 Lok Sabha elections, had to go to distant Assam to become a Member of the Rajya Sabha by a false declaration of residence.

Dr. JP said: “We, as a society, have enormous strengths. But as a society, building, nurturing, and developing leadership is certainly not one of them”.

Dr. JP said large sections of people feel that everybody in government -- politicians, bureaucrats, judges -- is a scoundrel -- and generalize that all rotten people in the country go into politics and all good people stay back. “Shunning politics and public office with such notions is, however, unwarranted and irrational. There are some very fine people in government just as there are very fine people in other walks of life. It is, therefore, absurd to conclude that scoundrels enter government and saints stay away”.

“Politics is perhaps the noblest of all endeavors because it is about reconciling the limited resources with unlimited wants, and reconciling seemingly irreconcilable conflicts among various groups in society, particularly in a very diverse and complex society. Without governments many things that are vital cannot be done.

“But unfortunately, politics has become the playfield of people who do not deserve to be there. Some are there because of their pedigree while many are there because of their money power or caste or muscle power. Strange circumstances catapult some others into high office.
“Such leaders rule the roost not because Indian people are stupid or irrational but because the problem is systemic. In the past 25 or 30 years, we have created disincentives for the right kind of people, and huge incentives for the wrong kind people, to enter politics”.

Dr. JP pointed out that there are answers to most problems. “Leadership is about identifying those answers, leveraging our strengths, and dramatically transforming the situation in the shortest possible time”. Dr. JP added that great changes in history all over the world had been wrought only when middle classes, the elite and the media joined hands, built appropriate platforms and launched concerted movements. “Do not expect the masses to be at the forefront of historical changes.”
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Dr. JP specifically dwelt on certain sectors, which call for transformational leadership.

Electoral system: While most of the countries, including Britain, are giving up “first-past-the-post” electoral system, we stick to it validating Macaulay’s observation, “Indians are the last living Englishmen”. It is time we switched to proportional representation.

Healthcare: We have one of the most disgraceful systems where public health expenditure is 17% and out of pocket expenditure, mostly by the poor, 83%. We rank with Cambodia, Burma, Afghanistan, and the Republic of Georgia all of which are at the nadir. We can introduce National Health Service as in Britain to provide access to quality health care to every citizen. In China, doctors in hospitals are paid their salaries from a county-level health fund. The people have the choice of going to any one of the 20 or 30 hospitals in the county. You have to attract patients and provide services to earn your salary. Money follows the patient.

Education: The failure of higher education has now hurt school education very badly. We have people with degrees like B.Ed’s and M.Ed’s but they cannot teach. Although we have one or two per cent of degree holders who are a match to the best in the world, the average university degree holder does not hold a candle to an average graduate in most of the civilized countries. We allowed this decline because of lack of leadership. We choose vice-chancellors based on their caste or region.

Dr. JP concluded by saying that we have to build incentives and institutions to change people’s attitudes. “Leadership is about creating institutions, identifying solutions institutionally and finding those things that work in the circumstances in which we are placed. We are not doing too badly despite all these impediments. But we can do much more.”

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Why there is a demand for criminals

Lok Satta Party President Dr. Jayaprakash Narayan said today there is a market demand for criminals in our society because justice is so inaccessible. "People have to create criminals to get rough and ready justice through devious means. Or else, they have to swallow injustice and suffer silently".

Addressing a gathering of IT professionals, Dr. JP said, "Criminals are legitimized and seen as Robin hoods by many because they render privatized justice. For a price, of course. And from there, they graduate into politics."

Dr. JP said: "Our judiciary is in shambles. We are all being very polite, partly because we do not want to destroy the one remaining institution with some semblance of authority and credibility and partly because we are afraid of the contempt of court law. But the reality is, the judiciary is as appalling as other institutions of the State".

Dr. JP said: "Nobody in India dares to go to a court of law unless one wants to stall some decision by way of a stay order or to harass someone. If you have the misfortune of going to a civil court and if you have the good fortune of getting a verdict delivered during your lifetime, you must be lucky, goes the folklore in Andhra Pradesh. If you lose the case, you lament in public and if you win the case, you cry in private. It is a tragedy for both."

Dr. JP said that building a quality justice system, accessible to ordinary people costs Rs.500 to 600 crore a year. "Such a system is necessary for small cases because it fosters a culture of law, a rule of law".

The three unwholesome traits

Dr. Jayaprakash Narayan in his address to IT professionals dwelt on three peculiar traits of Indians, which need to be corrected. The first is that we have no sense of equality. We accept inequality by birth as a natural condition of human life. There is no moral outrage at this inequality. It is not an issue of morality. We cannot live in a modern democracy, in a market society, without respecting labor, and human beings for what they are.

The second is lack of trust. Trust is required in dealing with people and across groups. It is there inn a caste or religious group. In a profession, it is there as a trade union. But across groups, it breaks down. We cannot afford that because it ultimately undermines all of us. We require leadership to build bridges and institutions for trust.

Finally, we lack a sense of common fate. Nothing can be better illustrated than by our practice of keeping our homes clean and dumping the rubbish on the road. What you give comes back. There is no choice and that is why we have spotlessly clean homes and filthy streets. We fail to recognize that injustice anywhere will affect us in some form or the other everywhere. There is no escape from that.

Dr. JP Meets his Orkut Friends

2008-03-09T10:47:00.000+05:30

Orkut is a social networking site popular amongst youth in India. Youth discovered it is a great way of being connected. One can find long lost friends, stay connected with current friends, and make new friends. One can create communities of their own on any topic of their liking or join existing ones.

Many communities have been created by earnest Orkutters on political topics. The communities have become hotbeds for emerging trends in political thought amongst Indian youth. Youth discuss here wide-ranging political ideas and thoughts. Youth discuss the state of the existing political culture and the need for a change and how we can bring about the change. They discuss the pressing need to combat the menace of corruption in our governance and politics.

Dr. Jayaprakash Narayan and Lok Satta Party are popular among young Orkutters. There are more than 110 communities in Orkut dedicated to Lok Satta Party and Dr. JP. Thousands of youth are members of these communities.

They drum up support for Lok Satta Party and discuss the importance of ensuring to all equal opportunities for growth and ending any discrimination based on birth. They discuss the novel measures introduced by Lok Satta Party that stand testimonial to the party’s commitment to transparency and democracy. Many earnest, erudite youth desiring change participate in these discussions. They have been advocating the need for a New Political Culture in the cyber world.

LSP provided the virtual world Lok Satta Party activists a chance to get involved in the activities of LSP in real.

Dr. JP met his Orkut friends at the party head office at 1:30 pm on Sunday, 9th March and had an interaction with them. There was a lively discussion on the current political scenario in Andhra Pradesh. Dr. JP emphasized the need for youth to take an active part in politics. The youth expressed their support to Lok Satta Party and wished to participate in its activities.

The active members of the party then guided them on how they can get involved in the activities of LSP in their locality.

The meet concluded with the youth taking a pledge for a corruption-free, developed India.

Short-Term Sops Won’t Resolve Farm Sector Crisis: Dr. JP

2008-02-29T17:48:00.000+05:30

Lok Satta Party President Dr. Jayaprakash Narayan today pointed out that bank loan waiver for small and marginal farmers and one-time settlement for other farmers will provide only temporal relief to a small section of farmers. An overwhelming majority of farmers are outside the institutional framework and borrow from private moneylenders. The waiver is also iniquitous in that it rewards only defaulters and lets down borrowers who have repaid their loans.

Reacting to the Union budget, Dr. JP recalled that farmers continue to commit suicide although Governments have written off farmers’ loans off and on. Instead, the Government could have constituted a Rs.100,000-crore agricultural fund to resolve farmers’ problems once and for all by taking steps for increasing productivity and ensuring remunerative prices. “We need to ensure credit to every farmer, small trader and labourer, improve marketing infrastructure, provide direct access to consumer, and add value to agricultural produce. A one-time loan waiver will temporarily improve banks’ balance sheets, but the plight of farmers and rural poor will remain unchanged. There is a real danger of rural credit system getting paralysed as it happened in 1990s. The loan waiver, decided upon with an eye on elections, provides temporary relief for a microscopic section of farmers at the cost of long-term gains.”

Dr. JP said that the central allocations to both education and health constitute 0.7% and 0.3% of the GDP in a country with a billion-plus population. Promotion of corporate hospitals and private educational institutions will not scratch even the surface of the crisis in the education and health sectors. The Government ought to have made free and quality education and healthcare as the fundamental rights of the people. Although many small schemes have been announced to benefit women, minorities and disadvantaged sections, the allocations are meager. Instead of squandering away precious resources on hundreds of schemes that have potential for large-scale leakages, the Government could have come up with a single social welfare scheme to make a direct attack on poverty.

Dr. JP, however, welcomed the raising of income tax exemption limits and reshuffling of the tax slabs. This will pass more money into the pockets of middle classes and salaried employees. The Government should also be complimented for meeting fiscal management targets.

However, there are signs of growth slackening in recent months. Infrastructure bottlenecks remain, and our cities are getting paralysed. An all-out effort is needed to improve roads, coal and power sectors and urban infrastructure. A massive effort to provide education of good quality for 12 years to all children, and free and quality healthcare to all are vital to enhance productivity, sustain growth and reduce poverty. Rule of law and elimination of corruption are vital for high growth. None of these problems has been seriously addressed in the budget. Dr. JP appealed to all sections to find ways of confronting these growing challenges before economic growth slackens and the promise of a bright future gives way to despair.

India Faces Threat of Falling Apart If Issues are Not Addressed: Dr. JP

2008-02-24T16:45:00.000+05:30

India faces the threat of balkanization unless systemic changes are carried out to provide political space to every group, said Lok Satta Party President Dr. Jayaprakash Narayan here today. “Mere protestations of ‘Mera Bharat Mahan’, without addressing the basic fissures, will not rescue India from falling apart”, he added.

Addressing a “One India – One People” forum organized by the Lok Satta Party in the context of attacks against non-Marathis in Mumbai and other places in Maharashtra, Dr. JP pointed that political India has already been decimated since national parties, elbowed out of most of the States, are forced to join hands with regional parties. The first-past-the-post electoral system enables parties based on region and religion, language and caste to whip up narrow sentiments and ride to power. The so-called national verdict is nothing but an aggregation of State verdicts. Widespread illiteracy and universal adult franchise are an explosive combination ,which narrow-minded parties are shrewdly exploiting.

Dr. JP identified caste-based reservations as another issue that is tearing part the country. Instead of dissipating the anger of neglected sections through innovative solutions, political parties merely stoked the flames in pursuance of their vote bank politics. He feared the break-out of a conflagration in the hinterland of New Delhi where Gujjars and Meenas are fighting each other over reservations.

Dr. JP clarified that reservations are indeed necessary for sections neglected for centuries as an interim measure. They, however, do not provide a permanent solution. That, however, does not mean that the son of a Collector or the daughter of a Minister too should enjoy reservations simply based on their caste. A solution lies in ensuring that every one born in this country irrespective of his caste or religion has a right to free and quality education for 12 years and every one, willing and eligible, is enabled to purse higher education at Government cost.

The economically backward, who are not eligible for reservations in jobs and education can be given a weightage of say 10 per cent marks in the qualifying examinations considering their income and rural upbringing. Politicians, instead of forging such win-win situations, are deliberately and crudely provoking anger and hatred among sections of people.

On the recent developments in Maharashtra, Bihar and West Bengal where some politicians have tried to fan parochial feelings, Dr. JP said that the sons of the soil thesis should be dismissed categorically if India were to remain one. The right of every Indian citizen to pursue education or employment or business or profession or simply anywhere in the country is non-negotiable. Every Indian should condemn parochial tendencies, recalling Martin Luther King’s quote, “The silence of good men is more dangerous than the brutality of bad men”.

No Attempt to Arrest Leakages: Dr. JP on Budget

2008-02-22T16:28:00.002+05:30

Hyderabad, Feb.15 - Mrs. D. Saroja, Mahila Satta Secretary, pointed out in a statement that liquor sales would shoot up to Rs.25000 crore in the coming financial year, if the Budget presented to the State Legislature is any indication. The Budget provided for an increase in excise revenue by Rs.866 crore during 2008-09. The Government would be earning Rs.11000 crore by way of excise and sales tax on liquor sales against Rs.8000 crore now.

Dr. JP said today that mere allocation of funds without a radical restructuring of systems was a futile exercise. There has been no substantial decline in poverty over the past two decades despite huge budgetary allocations. On the contrary, there has been an increase in the incidence of distress among vulnerable sections of the population.

Referring to the proposal to supply rice at Rs.2 a kg, he pointed out that going by the number of white cards already issued, the number of the poor exceeded the State’s population. On top of it, the Government now proposed to issue more and more white cards. On construction of houses for the poor, Dr. JP said the scheme was commendable but the Government turned a Nelson’s eye to the huge irregularities. Everybody knew about corruption in the execution of irrigation schemes but there was no word in the budget about curbing it.

Dr. JP said that the budget “does not address critical problems in education and health care or in tackling unemployment or making agriculture remunerative. For instance, Borabanda locality in Hyderabad with a population of over 10000 does not have a single Government school as a result of which even the poor are forced to send their children to costly private schools. Reposing its faith in ‘Aarogyasri’, which caters to a miniscule of people needing surgeries, the Government continues to neglect the public health sector. The Government fails to address the problem of the unemployed. Even if all the special economic zones materialize, they provide jobs only to less than 3 lakhs of people whereas there are 15 lakhs of educated unemployed. There is no attempt at making them employable by imparting the requisite skills or making farming remunerative with provision of credit, extension work and value addition. The so-called debt relief benefited only one-third of the farming community covered by official channels of credit while the remainder, dependent on private moneylenders, are pushed deeper into debt.

Dr. JP said that extension of quality education and health care free of cost to one and all, imparting of skills to the jobless and ensuring higher incomes to farmers alone will eradicate poverty.

Dr. JP complimented Finance Minister K. Rosaiah for abiding by the Fiscal Responsibility and Budget Management Act targets and for extending scholarships and fee reimbursement to all backward class students on par with those of Scheduled Castes and Scheduled Tribes.

However, the huge debt burden of the State exceeding over Rs.100,000 crore exposed a serious structural problem. Most of the revenue the State realized on sale of Government lands and liquor went towards the repayment of loans along with interest.

Dr. JP Calls for Greater Participation of Women in Politics

2008-02-02T11:47:00.000+05:30

Women should look at politics as a means of achieving self-respect and self-reliance for themselves as well as the people at large said Dr. Jayaprakash Narayan. He spoke at the self-employment training programme organized by Mahila Satta, the women wing of Lok Satta Party at the party State office. Representatives from Mahoobnagar Ideal Women’s Association provided training to women in making chocolate, surf, pain balm, liquid soap, shampoo. The women who acquired training will in turn train other women in their localities.

He said women should not get disheartened with the immediate problems they grapple with, but step forward with confidence and take an active part in politics. He said moving away of women from politics because it has got corrupt and criminalized will only aggravate the problem.

Dr. JP explained the women present the importance of their participation in local governance proposed by Lok Satta Party at the ward and district levels. He said women have developed an aversion to politics because bandhs, rastarokos, slander, and fighting have become an indispensable part of the prevailing political culture. He said the life of the common man will deteriorate further if the political culture remains the same. He said Lok Satta Party came into being to usher in a New Political Culture.

He said instead of becoming a private affair of a few as with other political parties, provisions have been made to enable genuine people’s participation in Lok Satta Party. He said LSP is built to be the property of the people and steps are taken to not cause any inconvenience to people during party events and maintain dignity even while criticizing someone. He said in a democracy the common man is king. He said empowering local governments and providing quality education, effective healthcare, and employment opportunities to all constitute the main agenda of LSP.

He said Lok Satta Party has reserved space for women in the organizational structure and party tickets like no other party has. He exhorted women to utilize this opportunity. He said greater women’s participation will expedite the process of ushering in the New Political culture.

He said setting up division-level governments to take governance to the door step of citizens ranks high on the agenda of Lok Satta Party for the coming GHMC elections and greater women’s participation in local governance will ensure 100% results. He exhorted the women who undertook training to in turn train women in their localities and help them stand on their own feet.

Mahila Satta State general secretary, Ms. D. Saroja, treasurer Ms. D. Manorama and Dr. Shoib, Mrs. K. Geetamurthy, Ms. Rama Devi, Ms. Subhashini, Ms. Gajanani, Ms. Umabala, Mudhosid, and Ms. Fatima have participated in the programme.

Competitive Populism Only Perpetuates Poverty: Dr. JP

2008-01-25T14:40:00.000+05:30

In their unabashed quest to get into power at any cost, traditional political parties are indulging in competitive populism, charged Lok Satta Party President Dr. Jayaprakash Narayan today.
Pretending to be benefactors, politicians treated people as mendicants and doled out sops and handouts as if they owned the money. Unfortunately, Governments and the media conveniently glossed over the fact that politicians lorded over money collected from people themselves. They remained silent even as politicians exploited people's poverty, illiteracy and ignorance.

Dr. JP said that that no one would dispute that the State should protect the poor and the dispossessed in an underdeveloped country like ours. But it should not be at the cost of the Government's fundamental and primary duty of eliminating poverty and enabling people to stand on their own feet with dignity. "But in India politicians have developed a vested interest in perpetuating poverty and lost sight of the country's future".

Dr. JP was reacting to the sops being showered on people by both the Congress and the Telugu Desam Party with an eye on the elections to the Assembly and the Lok Sabha in the near future. If one party promises loans at 'pavala vaddi', the other rivals it with '10 paise vaddi'. If one offers to write off interest, the other promises to write off loans plus interest. If one promises subsidies on a product or service, the other offers to provide it free of cost. If one arranges free marriages, the other offers a golden 'tali'.

"What the nation needs today is a comprehensive social security scheme and not piecemeal and ad hoc relief".

Dr. JP said "doles and handouts will not mitigate the suffering of the poor or enable them to live with dignity unless Governments address people's basic problems". The Lok Satta Party, he said, firmly believes that people can live with dignity and partake in wealth creation only when all forms of discrimination based on birth are eradicated.

It is possible when:
:: Quality education is made free and accessible to all
:: Free and comprehensive healthcare is guaranteed to all
:: Youth are empowered to participate in wealth creation through acquisition
of skills.
:: Incomes of people in traditional occupations like farming and weaving are enhanced

Dr. JP said it was a shame that a visiting British Prime Minister has to remind the Indian Prime Minister on the importance of universal and free primary education. "It is time that the politics of competitive populism and plunder gave way to politics of promoting human dignity." There should be a national debate on the appropriate anti-poverty schemes and the methods of their implementation.

Dr. JP pointed out how inefficiencies and corruption prevented even targeted people from availing of Government sops. For instance, the people covered by white cards in Andhra Pradesh exceeded the State's population. According to the Planning Commission and the National Sample Survey, only 16 per cent of people in Andhra Pradesh with a population of 80 million are below the poverty line. But Andhra Pradesh has more than 18 million families with white cards, accounting for a population of more than 80 million, assuming that each family has four and half members. "Yet, we hear that thousands of genuinely poor do not have white cards. Similarly, we hear pensions meant for widows, the aged and the handicapped as also houses under the INDIRAMMA scheme are cornered by the rich."

Even when the schemes reach deserving families, there is corruption every step of the way. Typically, Rs. 3000 is the bribe demanded for releasing money under housing programme for the poor. As Mr. Rajiv Gandhi once said, only 16 paisa is reaching the people on every rupee spent.

Dr JP called for a national debate on education and healthcare for all, and on ways of eradicating poverty and helping people stand on their own feet with dignity. "Political parties must shed self serving hypocricy and cynicism, and treat people as soverigns and citizens with self respect, not as vote banks and mendicants".

Reply to questions on blogs

2008-01-17T10:24:00.000+05:30

Please leave your mail IDs while posting a comment so that we can send you the response.

You can also write in your queries to info@loksattaparty.com.

Amarendra Reddy Sagila
(Research and Advocacy - Lok Satta Party)

Comment on LSP's Position on Weightage and Dr. JP's Reply

2008-01-03T16:15:00.000+05:30

Dear JP,

I appreciate your concern for the rural poor, and thank you for bringup some ideas (either good or bad).

I loathe YSR's true intentions of granting 4% reservation to muslims, and kcr braggings of 12% reservations to muslims. I absolutely agree with you that tinkering the reservation system for political gains trigger "kula kurukshetra" without a scientific study.

I see your commitment of adding 100 marks on a 1000 marks scale is hypocritical. You on one hand calls for a scientific study and on the other hand brings a random figure of 100 without any scientific study. Without stopping at that You are also suggesting the 100 marks idea as a panacea (gaurantees justice to all communities).

I see the other way. This 100 marks idea, further degrades/dilutes the amount of talent available in the country. Ambedkar has good intentions about the reservations, but failed to see in the long run it not good for any community (even to those who enjoy the reservations).

I think your idea is not a better one than Dr Ambedkar has envisioned.I think we have to address the issue at the cause not at the outcome. If rural poor is not getting good grades due to insufficient money provide them with scholarships. If the rural poor do not have access to the schools expand the education system and provide the access to schools. If the rural poor do not have good teachers recruit good teachers. If the teachers in rural area are not working well, then think of the ways how to make them accountable and think of ways to how to create competition among the schools, expand the private education system and create competing system that try to attract its customers (students).

I think 100 marks idea brings identical results of the ambedkar idea.Sincerely,Venkateswara Chowdary Penumuchu.

Sincerely,
Venkateswara Chowdary Penumuchu.

Dr. JP's Reply

Dear Sri Venkateswara Chowdary garu,

Thank you for the email. I agree with you on the need for quality education; but I disagree on the merits of a Weightage system as opposed to quotas.

1. Lok Satta Party is strongly and irrevocably committed to quality education upto 12th grade to all children, and higher education to all deserving students irrespective of means. Ultimately that is the solution to backwardness.

2. In the interim, there is a problem we need to address. Among groups included in affirmative action, only the better off are benefited. The result is caste wars: Gujjars vs Meenas; Malas vs Madigas etc. We need a policy framework to address this. A promise of eventual improvement of school education cannot put out these fires today. Equally, the rural and poor children from OCs are both angry and disillusioned. They need Weightage today.

3. Weightage, as opposed to quotas, encourages people to meet certain benchmarks. It is indeed hypocritical not to acknowledge that a rural or poor kid who may be brighter than a rich urban kid gets poor scores on account of poor schooling. And many such kids bloom later, if given a chance. They need both opportunity and hope. They cannot wait indefinitely in the hope that the next generation will have greater access to good schooling.

The 10% Weightage is arbitrary. Any number is bound to be arbitrary, and it needs to be decided on the basis of scientific surveys, and periodically revised. But Lok Satta is a political party; and in political communication you need tangible solutions for debate. The issue is not nitpicking on detail, but radically altering public and political attitudes on affirmative action.

With warm regards,

Jayaprakash Narayan
President

Reply to a Question on Dr. JP's comment about Modi Victory

2008-01-02T16:00:00.000+05:30

Dear Lok Satta,

Being a staunch supporter of Lok Satta, I am very disappointed and disheartened reading Dr JP's statement today in Eenadu Internet edition regarding the election results in Gujarat. It says that Dr JP said people voted Modi for his 'honest governance'(nijayithi paalana).

After the recent Tehelka's tapes, some evidence of Modi's involvement by commission or omission in 2002 genocide is out. Rapists and murderers are still out free even after their own confessions (actually boasting) in front of the camera. Let alone apologising, Modi actually stuck to his hard core Hindutva campaign and directly or indirectly supported the 2002 genocide.

Modi is not corrupted, Modi is very efficient, Modi has developed his state, Modi has got enormous public support, Modi was elected democratically with a great majority and SO WAS HITLER. Should I say further?

I would rather prefer my country being poor and corrupted rather than being a rich but lawless state divided by religion or caste.

Honest governance is not simply a governance without scams. It also means not denying justice to any person in the name of religion or caste. It also means rulers speaking the truth.

Is Lok Satta aiming for Modi's governance?
I hope and I know that it is not. I would be very grateful if it is made clear.

Yours Sincerely
Siva

Dr. JP's Reply

Dear Siva,

Thank you for the email. Lok Satta has no intention to support communal agenda. The 2007 Gujarat verdict bucking the usual anti-incumbency trend and several local adverse factors needs to be interpreted in a citizen-friendly manner.

There can be two possible inferences of the verdict. First, hardcore Hindutva has won again. Second, it is unrelated to religious sentiments, and people responded to better delivery of services and reduced corruption. Clearly, the latter interpretation is both accurate, and is more likely to encourage parties to improve performance rather than polarize people on caste and communal lines. Such an interpretation in no way lets a government off the hook elsewhere. It merely emphasizes the importance of delivery to gain public support. The net result is a shift from communal agenda to development agenda. Clearly, genuine democratic governance and rule of law involve dignity, opportunity and justice. Lok Satta aims at all these. In today’s India, all three are at a premium and Gujarat reflects that deficit. Happily, there is no trade off between development and justice, and both need to go together. That we value development does not mean we value justice any less. Nor does it mean that poor development guarantees justice. We have to strive for both. That is our goal.

With warm regards,

Jayaprakash Narayan

Aarogyasri: Lok Satta challenges Botsa for a debate

2007-12-26T13:11:00.000+05:30

The Lok Satta Party today charged the Government with enriching private and corporate hospitals by aggressively promoting “Rajiv Aarogyasri” and by quietly withdrawing from the health care sector in its bid to privatize it.

In a strong rejoinder to Housing Minister Botsa Satyanarayana taking exception to Lok Satta Party’s criticism of “Aarogyasri”, party spokesman Karthik Chandra challenged the Minister for a public debate. Of the 7600 surgeries performed under “Aarogyasri” until December 1, 2007, 95 per cent had been done in private and corporate hospitals and that three hospitals groups cornered the lion’s share of the insurance amounts.

Mr. Karthik Chandra said it was a matter of shame that the Government advertised the scheme as a boon to the poor by arranging for 7600 surgeries till now, ignoring the grim reality that every year six million people were sliding below the poverty line, most of them unable to pay for their medical care. “Aarogyasri” covers only a few rare ailments but not ailments like gastroenteritis, diarrhea, malaria, encephalitis and dengue and dog and snake bites that plague the common man most.

Mr. Karthik Chandra said “Aarogyasri” was nothing but “corporatesri” in that it was meant to benefit them and not the poor people.

"Is Government fuelling caste wars?" Asks Lok Satta

2007-12-20T12:45:00.000+05:30

Dr. JP Advocates 10% Weightage to Poor

Hyderabad, Dec. 20 - Lok Satta Party President Dr. Jayaprakash Narayan (Dr. JP) today came down heavily on the Andhra Pradesh Government's "insincere and cynical" decision to constitute a commission to go into the inclusion of Kapus and 17 other castes among backward castes.

Addressing a media conference, Dr. JP said "the manipulative decision is meant to drive a wedge between Kapus and other backward castes to derive short-term political gains."

There is indeed backwardness and deprivation among Kapus and for long they have demanded that they be included among backward castes. But the timing and manner of the decision makes it amply clear that the Government is motivated not by a genuine desire to help those suffering from deprivation and discrimination, it has all of a sudden resurrected the long ignored demand apparently in the light of the changing political firmament in Andhra Pradesh.

The decision will merely spark another 'kula kurusketra' (caste war of epic proportion) like the ones between Malas and Madigas in Andhra Pradesh and Gujjars and Meenas in Rajasthan.

Need for scientific study

Dr. JP said that several disadvantaged communities have genuine grievances about their non-inclusion in reservations, or wrong classification of BCs, SCs or STs. He demanded that all such communities should be carefully considered and included among categories eligible for various reservations only after a scientific, independent, objective and credible analysis of their economic, social, cultural and anthropological background. Without such a study, the Mandal Commission had included Kamma, Reddy and Telaga castes among other backward castes. Any unscientific effort will merely trigger irresistible demands for inclusion of every community as in Tamil Nadu and Karnataka.

But pending a scientific study, the Lok Satta Party believes, that justice can be rendered by awarding 10 per cent weightage in marks to children from poor families and with rural background irrespective of their community in both admissions to educational institutions and Government jobs. If a qualifying exam has total marks of 1000, children from poor and rural backgrounds shall be added 100 marks to their score. Then they too will be in a position to compete with their wealthy, urban counterparts.

"The Lok Satta Party is irrevocably committed to such a weightage in all competitive examinations for higher education including in MBBS, engineering and other professional courses and for Government jobs for all poor and rural children. Dr. JP said such a formula will once and for all guarantee justice to all communities and ensure that the Government does not exceed the 50 per cent ceiling on reservations mandated by the Supreme Court". Existing reservations can thus be continued that yet justice can be done to all deserving, underprivileged children irrespective of caste.

Free quality education to all

Dr. JP demanded that the Government provide at its cost quality education in English medium up to the 12th class to all children and higher education to all deserving and desirous students irrespective of their means. "The Lok Satta Party has, therefore, made quality school education to all children and free higher education to deserving students of all castes the centerpiece of its political and social agenda. Eventually caste should be abolished over a generation and our children should grow up with their heads held high, untainted by caste and parochialism, Only then will the dream of Dr. Ambedkar be realized".

At present only seven per cent of all children pursue higher education while 93 per cent do not go to school or pursue higher education. Even the seven per cent in the 11-14 age group that attend school are victims of poor quality education. Thirty per cent of them cannot read a single passage in any language while 70 per cent cannot answer even a simple arithmetic problem like division.

Dr. JP also called for the establishment of schools and hostels and provision of scholarships to children of EBCs (economically backward castes). Government apathy towards education of SC and ST children was evident from its failure to spend Rs.342 crore, as pointed out by CAG in its latest report.

Lok Satta's "Grama Nyayalaya" Initiative Gets the Cabinet Nod

2007-12-14T13:58:00.000+05:30

After a stiff resistance within the government, the cabinet finally approved the "Grama Nyayalaya" bill after seven long years.

Lok Satta, pioneer of political and governance reforms in the country had spearheaded this cause and submitted a report with the aforesaid "Grama Nyayala" initiative to "The National Advisory Council" 2003 in order to facilitate speedy justice at the grass root levels in the country.

According to Dr Jayaprakash Narayan, "it definitely is a satisfying moment not only for us but also for the cause of democracy and rule of law.

Commenting further, he stated "It is the most important step towards implementation of speedy justice. We at Loksatta movement had been fighting for this since its inception. Loksatta party painstakingly drafted this bill and pursued it at every level right from the beginning" he added.

He further stated" There is a market to demand for criminals to provide rough and ready justice through brutal means. This lead to criminalization of the society and politics as well. Without rule of law, due process and speady justice, democracy becomes illusory to the bulk of the people.

"Once this bill is implemented, it will be a great step towards a more efficient and accessible justice system. But for local justice to be effective, the police must be reformed. The crime investigation process should be made independent of partisan politics and at the same time made accountable", he said.

He further emphasised that "These local courts should conduct trials in local language and there is a dire need for "mobile courts" where in the courts will go to the location or crime or dispute and record evidence. This will substancially eliminate perjury. These courts would be an integral part of the independent justice sytem with a provision for appearance of lawyers to represent the clients"

Dr JP summed up by saying "A free society cannot exist without accessible systems of justice. Indian judiciary and legal profession have set high standards of excellence. But the bulk of the people are beyond the pale of our justice system. We need to restore public confidence in our legal system, and ensure peace, order and harmony in society. Many reforms are required to provide speedy, accessible and efficient justice. One simple, low-cost, effective, painless solution is the institution of local courts following summary procedures. This measure is not sufficient to address the monumental crisis facing our judiciary, but is a necessary first step in that direction".

If local courts are appointed at the rate of one per 50,000 in rural areas, and one per 1,00,000 in urban areas, we will have about 15,000 new mobile magistrates accessible to people at the local level, providing justice at the door-step, following simple, easy and citizen-friendly procedures, and ensuring all these at a very low cost, which can be recovered in multiples by imposition of even a small court fee. The presence of lawyers, effective mechanisms for monitoring and accountability, and provision for appeal, guarantee fairness in the process and real justice to the poor. The whole Local Courts system will be an integral part of the independent judiciary, and fully controlled by the judiciary. This ensures strict separation of powers as envisaged in the Constitution, and effective supervision and control by the judiciary.

Rescue Gulf Workers, Pleads Dr. JP

2007-12-01T16:53:00.000+05:30

Lok Satta Party’s National Coordinator Dr. Jayaprakash Narayan (Dr. JP) today asked the State Government to go to the rescue of Nizamabad district workers who had reportedly been sentenced to death or various terms of jail. The State Government, through the Indian Embassy in the UAE, should provide legal assistance and enable the sentenced to go in appeal.

Dr. JP said the incident once again highlighted the troubles the illiterate and gullible migrant workers faced because of the unscrupulous methods employed by brokers with political backing. Those who had returned on their own or with Government assistance are facing extreme hardship and some of them have reportedly ended their lives.

Dr. JP said the Government should immediately arrange to bring back Telugu-speaking people who are without proper job visas by sea route, if necessary. The Government should declare a three-year moratorium on their debts and provide them employment skills.

The Government of India, he said, should take up with the International Labor Organization the grievance of Indian workers that they were being thrown out of Gulf countries without being paid wages for the days they had worked. Simultaneously, the State Government should take stringent action against brokers with political backing who were taking innocent people for a ride.

Media and People Power

2007-11-23T16:54:00.001+05:30

We, Indians are among the truly privileged people enjoying all liberties including freedom of speech and expression guaranteed under the Constitution. The pleasure of being able to write or say what you please, subject to laws of libel and reasonable restrictions imposed to protect the larger public interest, is indeed a rare one even in the post-war world. Not too long ago thousands were jailed in East Europe for merely saying what they believed in, or worse still for speaking the truth. Even today, the citizens of the world's most populous nation have no right to freedom of speech and expression. Sometimes it is clear that we take our blessings for granted, and do not have adequate appreciation of liberty.

Over the past 60 years after independence, the three constitutional organs of state have fallen far short of our hopes and expectations. Legislatures have become battle fields, and no serious public policy is evolved, nor accountability of the executive enforced by our elected representatives. Most legislators are content to be disguised executive, seeking and obtaining state patronage, privilege and pelf. A vicious cycle of unaccounted money power, illegitimate election expenditure, polling irregularities, abuse of public office, corruption and perpetuation of feudal oligarchies is operating, making citizens somewhat helpless. Executive office has become a private estate, and legal plunder has become the norm. Both the elected executive, and appointed public servants have become the modern-day monarchs, and the notion of public service is all but forgotten. Honesty and survival in elective public office are increasingly incompatible. The judiciary has become very much a part of the problem. Law's delay and the breakdown of rule of law have nudged our society into near anarchy. With 25 million cases pending in courts, many of them for several years and decades, a well-developed market has developed for criminals and musclemen to provide rough and ready justice.

In the face of the colossal failure of the three constitutional organs of state, the citizen is reduced to a state of abject helplessness. Cynicism and despair have become all too pervasive; very often in far greater proportion than the situation warrants. Many of our travails are but an inevitable part of the maturing process of an emerging democracy. However, as our democratic evolution coincides with the age of technology, instant communication and rapid transformation, there is a revolution of rising expectations. As reality is well-short of expectation, there is perpetual disappointment and frustration, further worsening the already complicated situation.

Thanks to free press, India remained a democracy against all odds. In this complex environment, the one institution which nurtured, sustained and strengthened our democracy is the press. The role of media during freedom struggle and after independence has been an extraordinary and inspiring saga. Gandhiji and his colleagues always relied on the print media to propagate their message, and inspired the educated middle classes to form the bulwark of the freedom struggle. Once the message was spread, and a solid phalanx of middle classes was formed to lead the movement, mobilizing the masses for freedom was relatively easy. After independence, the early excitement and enthusiasm abated, and as institutions of state became moribund and dysfunctional, the media played an extraordinary role, with few parallels in the world. It is this fierce independence, unflinching courage and undiminished idealism exhibited by the press which broadened and deepened our democracy.

The greatest moment for the media was during the epochal period of the 70's, marked by people's movement against corruption and mis-governance, increasing state oppression culminating in suppression of liberty in the name of emergency, and the eventual resurgence of freedom with the glorious verdict of 1977 unseating the establishment and restoring the lost freedoms to people. Rarely have the people spoken so unequivocally and courageously, conquering fear and prejudice, breaking traditional barriers and resisting inducements. At a time when the electronic media were completely state controlled, the role print media played in safeguarding democracy and restoring liberty was an outstanding one. There are many less dramatic, but equally potent illustrations of the media's heroic role in confronting the establishment, humbling the mighty, defending the citizen, and acting as the sentinel of freedom. The quality, courage, catholicity, and concern for human values exhibited by Indian media is second to none.

Post-emergency period saw a breathtaking expansion of the media. The 90's saw the rapid spread of electronic media, as the march of technology with the advent of satellite television made state control irrelevant. It is ironic that the state, which controlled all facets of electronic media for decades, is now a helpless bystander as the private channels became the authentic sources of news and views. It is also a sign of times that this is not a result of any deliberate policy or soul searching by the state, but a product of communications revolution which could not be blocked by the political class. This, more than any other event, presages the future of the media. For about 40 years after independence, the state was the dominant player in generating and propagating news, and in determining the fate of the media by its policies (newsprint), laws (emergency), control (electronic media), and patronage (advertisements). But now all that has changed. The dismantling of the license-permit-quota raj on the one hand, and the communications revolution disregarding national boundaries and state controls on the other, have created breathtaking opportunities for the media. The future role of the media is in their own hands, and is no longer dictated by external agencies.

That even in India, which still is home to the largest number of illiterates and the poor and malnourished on earth, there has been a breathtaking proliferation of mass media is evident. The facts speak for themselves: over 62,483 newspapers of all kinds, of which about 24,927 are in Hindi, over 18 crore combined circulation of newspapers and periodicals, over 800 films annually with unbelievable number of audiences, 120 million radio sets with 24.6% of (rural) population regularly listening, 79.4 million television sets (2001) with half the population of India regularly watching the terrestrial TV channels, over 267 million Indians with regular access to cable television, 21% of the population covered by FM radio, nearly 248 million telephones and rapidly expanding, over 209 million mobile phones, over 5 million personal computers and internet users projected to be 100 million by end of 2007….. the list is quite impressive. The last decade has seen a remarkable expansion of media and communications network and coverage. With literacy levels increasing rapidly over the past decade, and more and more people having disposable incomes after meeting the basic needs, media's reach and influence are only going to grow over the next decade and more.

Have this expansion and power of media been translated into greater public good? Is our democracy more mature now? Is there more informed public discourse on account of the media? Are media still a part of the solution as perceived for decades, or have they become a part of the problem? Are there signs of self-correction and growing public-spiritedness, or is there more decay and crass consumerism at the cost of rational discourse and public good? These are troubling questions which haunt all lovers of liberty and democracy. Obviously, when we are dealing with a vast country and innumerable newspapers and television channels, there cannot be any sweeping generalizations. There is much that is good and healthy, and there are parts which are perverse and sickening. But we can safely say that the bulk of the media today represents a moral force for the rejuvenation of republic and transformation of democracy. By its very nature, the press is an empowering, ennobling, invigorating and liberating force. In an open and competitive system the media act as moral instruments to hod those in authority in check, and promote public good. Healthy skepticism, irreverence of authority, a capacity for self-deprecation, fierce independence of spirit, moral outrage at egregious discrimination and injustice, and tolerance of heterodoxy and respect for diversity are the hallmarks of our media. These are also the vital ingredients of a democratic society. Happily, given our past, the maturing of our institutions, the power of the media, and the spirit of liberty pervading our people, there is no likelihood of our freedoms, including freedom of speech and expression, ever being extinguished again. There is no external threat to the media in future.

But there are certain danger signals emanating from within. A potent instrument of freedom is increasingly becoming a private tool for profit or perverse pleasure. Let us examine some of the less savoury aspects of the media today.

First, there is an ever-increasing obsession with power games. Politics, a noble endeavour to promote public good and happiness, has become a fiercely competitive exercise for personal aggrandizement and private gain. There is intense excitement in media's coverage of politics. Power games are analysed endlessly, and endless space is devoted not to issues which effect people's lives, but on who is winning and who is losing, who is rising and who is falling, who is teaming up with whom, and splitting from whom. This approach to politics as a spectator sport, often a bloody, no-holds barred fight to the finish, has severely undermined our democracy, and retarded its evolution. Politics has now become an alternative to medieval blood sports, appealing to the worst gambling instincts, completely divorced from the lives and well-being of citizens. While the nature of political recruitment and the compulsions of a flawed process of power are largely responsible for this decline, the media have contributed heavily to this unhappy state of affairs. As a result, we have only change of players on our political scene, but the rules of the game remain unchanged. This had bred enormous cynicism about our political process.

Second, in many cases the morbid curiosity in the game of power and the natural instinct for political voyeurism have progressed further. The media, instead of playing the role of an impartial, and critical umpire, have been sucked into the vortex of partisan politics, and started taking sides. These political preferences are often not based on ideologies and policies, but are an expression of personal bonds and mutual gain. Public interest has taken the back seat and truth has become the casualty. Diametrically opposite conclusions are drawn from similar facts by the same newspaper depending on the players involved. While invocation of Article 356 in one case is strongly justified in the backdrop of certain facts, such a course is stoutly resisted in another identical case because the players happen to be different! This playing of favourites, and twisting facts and logic to suit convenience, have distorted public discourse and made sections of the media very suspect in the eyes of the people. This undermining of the legitimacy of the media, and increasing suspicion that media groups have their own private agendas, have diminished their credibility and persuasive power, even as their reach and power are growing.

Third, media business is seen increasingly as any other profit-making business. Undoubtedly financial viability is the key to sustainability, and no paper can run for long if there are constant losses. However, while bottom-line has to be kept in mind, treating newspaper as a commodity like any other is a gross perversion of the freedom of expression. There are countless other business where you can peddle consumer products and make a tidy profit. By its very nature, newspaper cannot be a very profitable business. Printing and exhibiting whatever appeals to the lurid tastes and base impulse of the readers and viewers regardless of consequences to the society is nothing short of abdication of the sacred responsibility to promote rational and enlightened public discourse. This commodification is growing rapidly with corresponding decline in the obligations to the community.

Fourth, even when the intentions are honourable, there is decline in professionalism. The more competent and conscientious journalists are doing an outstanding job. But the bulk of the correspondents are both uninformed and casual about their profession. The rank incompetence and shoddiness have been repelling many discerning citizens. Journalism has become just another job in many cases. Worse still, in many cases, particularly in regional and local newspapers, the potential nuisance value of a correspondent has its own pecuniary rewards! The bonhomie with which powerful politicians, bureaucrats and businessmen deal with pressmen is converted as a source of patronage and private gain. These unhappy tendencies are blunting the moral sharpness of media, and reducing their efficacy as guardians of public interest. If these tendencies of corruption and degradation are not checked soon, there is a real danger of this vital institution too falling by the wayside.

Fifth, the power of the media is exercised by some of the media flippantly. Reckless hedonism and unchecked narcissism have become quite common in the name of giving the readers what they want. To cite one instance, several newspapers and television channels have treated an ageing star's birthday festivities are far more important than the centenary celebrations of Lok Nayak JP! This pandering to the whims of the glitterati, and treating the general public as a source of amusement and enrichment of the privileged few is both undemocratic in principle and immoral practice. Harmony can be preserved in an inequitous society only when the privileged exercise restraint and act with deep sense of responsibility. If the media ignore the plight of the poor and underprivileged, and indulge in theatrics and circuses as in Roman amphitheaters, the broad consensus in society for democracy can easily evaporate. Democracy is the art of elevating morally unacceptable status quo to a level of dynamic tension, and resolving potentially violent conflicts by social transformation. If hope and faith in the future are extinguished, and if a modern democracy is merely a cosmetic substitute to a feudal oligarchy, then ordinary people have no longer a stake in the preservation of democratic order. The media will ignore this at their own peril, because democracy and liberty are the basis of a free press.

Sixth, increasingly what is most noisy is regarded as news. Substance is ignored for style, and image is given precedence to reality. Decibel levels and not the weight of the issue, local arguments and not evidence, slogans and not rational logic are dominating our political and social scene. The media, in the mistaken notion that what is most strident is news, are inadvertently encouraging such tendencies. As Mark Twain said, often a hen which only laid an egg cackles as if she has laid an asteroid! If we confuse the egg for an asteroid because of the cackling, it does not speak highly of our judgment and discerning ability. A casual glance at the newspapers reveals this lack of judgment which is the luxury the lazy and incompetent enjoy. A noisy walk out in the legislature on a trumped up issue, feigned emotion for a self-serving cause, and dramatic pronouncements divorced from truth are given far too much visibility impairing rational discourse.

Finally, there is far too much cynicism and despair in our society. The press, instead of offering sensible and practical answers, is adding to these dark emotions and feelings. It cannot be anybody's case that things in India have deteriorated over the past 55 years. We are better off than ever before, and there is overwhelming evidence that things are improving steadily. However, there is increasing gulf between our potential and its fulfilment on the one hand, and expectation and reality on the other. There is moral indignation and justifiable anger an account of this increasing gap. Such anger is the moral force which can accelerate progress and improve the human condition. If, however a sense of balance is not preserved while condemning what is wrong, there is a danger of throwing the baby with the bath water. The only antidote to the ills of a democracy is more and better democracy. There are no knights in shining armour on white horses who can resolve our dilemmas. The media owe it to the country and themselves to promote a sense of optimism by focusing on a clear destination and showing a direction. Otherwise, there is a danger of media becoming a part of the problem, instead of being the solution.

Today our democracy is in a curious phase. For all appearances, we are a robust democracy with competitive elections, political freedoms, peaceful transfer of power and real authority vested in elected governments. But deeper analysis reveals several troubling features corroding our liberties, perpetuating inequities and discrimination by birth, sustaining self-serving oligarchies and political dynasties, and delegitimizing the political process. This prismatic political culture coexists with a rapidly growing economy and a self-confident entrepreneurial and professional class. But the fruits of growth are shared only by about 40% of the population, and the bulk of the people are not given the opportunity in wealth creation. Their potential remains unfulfilled and avoidable suffering continues unaddressed because the Indian political system never addressed the fundamental issues of equity and opportunity. Quality education accessible to every single child irrespective of circumstances of birth, reasonable healthcare free of cost to every citizen, productive skills to participate in wealth creation, and income enhancement in agricultural and rural sector are the four greatest challenges in today’s India. Only when we accomplish these goals will all Indians partake in the feast of economic growth and share the dreams of a great power fulfilling its destiny. Such a transformation is the function of politics.

True politics is a noble endeavour to reconcile conflicts in society and to fulfil the potential of every child. Our current political culture based on pelf, privilege, patronage, muscle power, dynastic succession, feudal fiefdoms, arbitrary use of power, private gain at public cost and perversion of the most elementary principles of democracy is at the root of the crisis of governance and perpetuating inequities in India. We need a new political culture based on genuinely democratic political parties, transparent funding, constitutional methods of mobilizing public opinion, rational debate, and genuine agenda to empower people and release their energies.

The only powerful instrument people have at their disposal in creating such new politics for a new generation of Indians is free and vibrant media. Our glorious tradition of free and fearless media gives us a great headstart in this endeavour. The young Indians constitute 73% of our population, and are hungry for change. The rapid spread of telecommunications offers us a great platform to communicate to the vast multitudes of India effectively and mobilize public opinion. Economic growth gives us the cushion to withstand the tremors of transformation. The people are ready for change, as their experience taught them that mere periodic elections and change of governments do not fulfil their aspirations. The media should play a critical role in this second freedom struggle, just as they played a vital role in galvanizing the middle classes in the national movement against the colonial power.

There is much that is wrong with our society and polity today. There is also much that we can be proud of. There is a lot more we can accomplish. Most of our problems are not intractable – we do not have to rediscover fire or reinvent the wheel. We are fortunate to line in an era of spectacular scientific progress and human advancement. Avoidable suffering can be prevented better than ever before, and human potential can be fulfilled in its fullest measure in today's world. Many pioneers, thinkers, scholars, activists and practitioners showed the way we can make life more glorious and society more harmonious. The media need to focus on these solutions. Mere description of what is wrong, if overdone, reduces us to being masochists. We need strong willed, optimistic, determined, sensible pursuit of those collective goals which make life worthy. The media, print and electronic, have done a lot to make life tolerable, to keep hope alive, and to sustain human spirit in the face of monumental problems our society has faced over the decades. A reasonable level of prosperity, human dignity, realistic opportunities for vertical mobility, and confidence in the fairness and justice of our political and social institutions are well within reach of all of us. Once lives and work in the next few decades will be judged by one single yardstick – have we fulfilled this promise? The media have a pivotal role in this gigantic, exhilarating and eventually rewarding task. The anticipation and excitement with which we wait for the morning newspapers, and the pleasure with which we tune in our favorite channel are testimonies to this great potential of the media in our society. There is every reason to hope, and believe that our media will play an even more glorious role in fulfilling our potential as a nation, and promoting human happiness.

Lok Satta Party pioneers intra-party democratic process in India (will conduct organizational elections by secret ballot)

2007-11-22T11:40:00.000+05:30

Lok Satta party is all set to create history on the Indian political scenario.

For the first time in India, a political party, i.e. Lok Satta party is organizing intra party organizational elections by secret ballot and preferential voting for over 50 divisions as per the constitutional norms laid down by the party.

Addressing the media at a press conference held today at the party head quarters, Dr Jayaprakash Narayan- National coordinator, said "The Party's Constitution reflects the values of internal democracy, total transparency, and member-control. Apart from the Party's agenda and vision, there are critical measures institutionalized in the party's structure and functioning, which make it the harbinger of 'new politics for the new generation", he added

Speaking on the subject of a new political culture, Dr JP Narayan elucidated," All Party candidates for organization office will be chosen by the members of the party through a secret ballot. There will be affirmative action policies to promote leadership of women, youth, backward classes and minorities and Scheduled Castes and Scheduled Tribes.

Elucidating further on the internal electoral structure, he further said," Article XXI of Lok Satta Party constitution mandates the creation of an autonomous Electoral Authority to oversee all internal party elections in the precincts of Greater Hyderabad Municipal Corporation (GHMC).

The party spokesperson chipped in further and said" The Election Authority for the city of Hyderabad will have the flexibility to constitute lower level election authorities at the level of Division to assist in the conduct of the organizational elections.

Don't enter into MOUs on Rural Public Schools

2007-10-31T11:58:00.000+05:30

The Lok Satta Party today dubbed the State Government's scheme to promote Rural Public Residential Schools with private partnership as a populist scheme meant to benefit managements rather than rural students.

Mr. D. V. V. S. Varma, Lok Satta Party Secretary, in a statement asked the Government not to go ahead with the signing of MoUs with private managements but review the scheme.

Mr. Varma pointed out that that of the 31 lakh students in the 9000 odd high schools in the State, only 3.50 lakh students will get admissions in the 294 schools to be started at the rate of one per Assembly constituency. If the students admitted under management (25 per cent) and merit (25 per cent) quotas are excluded, only 1.75 lakh students or a mere four per cent of high school students benefit.

The Government was publicizing the scheme that benefits a paltry percentage of students with great gusto to gain political mileage. The proposed schools will not reform high school education. And the Government had totally ignored primary education in its bid to promote rural public residential schools. According to surveys made by Asar and Sarva Siksha Abhiyan, primary education is in a parlous state with 62 per cent of students not able to write even the names of their teachers, 50 per cent their parents' names and 8 per cent their own names.

Mr. Varma demanded that 20 per cent of seats in primary and upper primary schools under private managements be reserved for the free education of poor students. He wanted Government schools to be strengthened on par with private schools.

The Lok Satta, if voted to power, will provide free and quality education to all irrespective of their caste or economic status.

Dr JP's Padayatra from 23rd October 2007

2007-10-20T13:27:00.000+05:30

Dr JP's Padayatra from 23rd October 2007

LSP demands closure of all liquor shops in localities where Dalits and poor people predominate

If women demand, even the licensed liquor shops should be closed

Interacting with media today, Lok Satta Party's Secretary Sri DVVS Verma stated that his party is moving forward to ensure ?liquor-free villages/towns. He stated that Lok Satta party will be adopting a multi-pronged strategy to combat the menace of liquor problem. In this direction, the Party's National Coordinator, Dr Jayaprakash Narayan will be leading a Padayatra on 23rd October 2007 from Peddagotipadu in Guntur district. The three-day Padayatra will conclude on 25th October 2007 evening in Guntur with a public meeting.

Sri DVVS Verma pointed out that over 200 Dalit women in Peddagotipadu have resorted to indefinite hunger strike against the presence of a licensed liquor shop in their village and one of them even attempted to commit suicide. In spite of District Collector's report to Excise Commissioner to relocate the licensed liquor shop, no action has been taken thus far. DVVS Verma stated that the Padayatra, based on principles of Satayagraha, is being carried out to demonstrate Lok Satta Party's complete support to the legitimate demands of the Dalit women in Peddagotipadu. Mr. Verma demanded closure of the licensed shop in all in localities where Dalits and poor people predominate.

Apart from immediate closure of belt-shops, Mr Verma demanded that if large numbers of women in a locality demand the closure of licensed liquor shops, then their demands should be heeded. He also demanded that all political parties should take a vow in front of people stating that they will not distribute liquor during elections.

Mr Verma also stated that LSP is aiming to ensure a few pre-selected mandals as liquor free mandals. He stated his party will be using multiple means such as Padayatra's, citizen's arrest under Section 43 of CRPC and other constitutional means to give impetus to the on-going liquor control agitation.

Speaking on the occasion Mahila Satta State Convener D. Lakshmi, stated that they are operationalisng liquor control committees in various villages to ensure that closed belt shops are not re-opened. She called on various civil society organizations and media to join hands in this noble endeavor to find a lasting solution to the liquor problem in the state.

Lok Satta Party's spokesperson Y. Ramadevi referred to the recent incident where a mother killed her drunkard son in Namligonda village in Warangal district. She pointed out that such tragic incidents could have been avoided had the successive governments taken a proactive stand on removing the belt shops in the state.

On this occasion, Mahila Satta State convener D. Lakshmi, and Lok Satta Party's spokesperson Y. Ramadevi unveiled posters for Padayatra.

Minimum Support Prices for Agricultural Commodities - Letter to the Prime Minister

2007-10-19T13:14:00.000+05:30

Esteemed Prime Minister Dr. Manmohan Singh ji,

There is enormous unrest in the farming community in Andhra Pradesh resulting from the severe discrimination in determining the minimum support price for paddy. In this connection, we appeal to you to examine three interrelated issues of procurement price of rice; trade policies in relation to agricultural commodities and marketing regulations affecting the producers' interests.

Procurement Price of Rice:

It is estimated that a quantity of about 90 million tons of paddy is produced by the farmers in the country and this is the largest quantity in the food-grain basket. There is a misconception in the minds of the policy makers that when paddy is converted to rice, only 65% is redeemed and the balance is wasted. However, the residual products like husk, broken rice etc., are valuable and marketable products. 100 Kg of milled-paddy would yield 65 kg rice, 10-12 kg of broken rice, 8 kg of cattle feed and the balance would be husk. The government already has a scheme to modernize all rice mills to enhance the yield of rice and minimize wastage in milling. Hence, the difference in value between wheat and rice is very marginal and accordingly the minimum support price difference also should be marginal.

Government of India is spending huge money on Food Corporation of India (FCI) for maintaining the buffer stocks. It is estimated that an amount of Rs. 760 is spent by FCI, as handling and carrying costs for one quintal of rice every year. Compared to this expenditure by FCI, the additional support given to the rice farmer by way of a proper minimum support price is negligible. The high operational costs of FCI are because of its highly centralized and corrupt administrative apparatus. Given these problems, public distribution system needs to be reoriented to meet the requirements of the people below poverty line by creating Grain Banks managed at the local level. This will definitely reduce transaction, transport, handling and storage costs, while enhancing the rural employment opportunities. Most importantly, it will eliminate corruption and leakages in the system, and reduce food subsidies.

Trade policies in respect of agricultural products:

As on date, the government seems to be having ad-hoc export and import policies with reference to many agricultural products. For instance, 7,90,000 tonnes of wheat has been imported from international markets by paying Rs. 1600 a quintal during 2006-2007, when the Indian farmer was paid at the rate of Rs 750 per quintal.

Similarly, cotton is imported periodically by paying higher prices for a limited quantity to meet the short-term domestic requirement and this step has an adverse affect on the price of cotton in the local markets. Such irrational, ad-hoc, anti-producer policies are distorting the market forces, and severely depressing prices of agricultural commodities. In case of garment industry, cotton cost is only a small proportion of the final product price and yet short-sighted policies have done great damage to the farm sector. Not surprisingly the largest numbers of farmer suicides are from the cotton-growing-areas.

Political sensitivity of onion prices since 1980 is well-known. The government certainly has responsibility to help consumers in times of severe price escalation. However, the producer cannot be penalized. And the government has an obligation to buy the produce at market prices and subsidize the consumer. Instead, over the years, dramatic short-term steps were taken to depress the prices and the farmers were left in lurch. At the same time the government and Planning Commission keep emphasizing the importance of rejuvenating agricultural sector. As a great economist and architect of liberalization policies promoting competition and choice, you are more aware than anybody else of the crisis afflicting Indian agriculture. When over 60% of people depend on agriculture, which accounts for 19% of GDP today, a simple arithmetic tells us that the average rural per-capita is only 1/6th of that of the urban population. This is a potentially an explosive situation causing devastation to millions of households resulting in agrarian strife. Successive governments have been aggravating this crisis by acting in a cavalier and short-term fashion without deeper reflection or long-term sustainable policy.

When the World Trade Organisation (WTO) permits an aggregate of 10% subsidies, government policies have not merely denied active support to agriculture, but have actually done everything possible to undermine agriculture by depressing and distorting the markets. The least that the farmers expect from the government headed by a great economist and true champion of fair competition is to let the market forces prevail and provide judicious support to the poor consumers through subsidies when needed. It follows therefore, that our farmers should get benefit of international prices whenever there are supply constraints. Our farmers should also be supported by strong government protection through minimum support prices whenever the prices are depressed. Unfortunately, the exact opposite policy prevails now to the long-term detriment of agricultural economy.

Restrictions on Marketing:

There are about 7,810 regulated markets in the country. The average area to be covered by a regulated market varies from 200 Sq.Km to 780 Sq.Km. Most of these markets are controlled by middle men and commission agents. Small farmers suffer from poor access to markets and are forced to sell their produce to the local trader-moneylender-input supplier at a price dictated by him.

The farmers are also getting short-changed in the market yards, which are headed by nominated bodies. The commission agents and the traders join hands to offer the lowest possible price to the agricultural produce, apart from short-changing the farmer in weighments and charging exorbitant commission (20% - 25%) as against the authorized commission of 4%. In order to address this situation, all the restrictions on movement, storage, processing and trading of agricultural commodities should be immediately lifted. However, the government should insist on reporting requirements in order to keep track of demand-supply situation. The farmers must be organized and empowered to undertake various marketing operations including exports.

Under these circumstances, Lok Satta Party earnestly urges you to immediately take the following steps:

The paddy procurement price of at least Rs. 1000/- per quintal should be announced. On a long-term basis, there should be parity between paddy and wheat as has been the case historically.

Agricultural trade policies must be immediately rationalized. When the international prices are higher, domestic farmers must have an unfettered right to export. In order to sustain the public distribution system, the government must procure at market prices or at minimum support price, whichever is higher, and bear the cost of subsidy. Minimum support price must guarantee fair returns to farmers as recommended by the National Commission on Farmers chaired by Dr. MS Swaminathan. Import of agricultural commodities if any should be only to the extent of actual demand-supply gap when there is inadequate production of agricultural commodities. Imports must never be resorted to as a mechanism to depress agricultural prices. All regulations on agricultural trading, movement, storage, processing and marketing should be immediately repealed.

I am sure your government understands the gravity of the situation and will act swiftly to ameliorate the distress of paddy farmers in Andhra Pradesh, and help rejuvenate the agricultural and rural economy.

Yours Sincerely,

Dr Jayaprakash Narayan

Special Court immediately needed

2007-10-16T16:15:00.000+05:30

Corruption allegations against Dr. YSR and Mr. Naidu

Special Court immediately needed

Special Judges should be appointed by the Government
Assets of corrupt public servants should be confiscated

Given the ongoing allegations and counter-allegations between Dr YS Rajasekhar Reddy and Chandrababu Naidu, Dr. Jayaprakash Narayan demanded that the State government must immediately constitute a Special Court to probe the issue of disproportionate assets. He strongly emphasized that this is not a private affair between the current and former Chief Ministers of Andhra Pradesh. Lok Satta Party demanded that the investigation must be totally free from political pressures and a Special Independent Prosecutor with impeccable credentials should be appointed by the Chief Justice of High Court. Dr.JP also demanded that the State government should promulgate an ordinance for confiscation of assets of corrupt public servants.

Under section 2 (c) of the Prevention of Corruption Act (1988), all Ministers, MLAs, elected representatives at State and local levels clearly fall under the definition of ?public servants?. Citing historical precedent for considering elected representatives as public servants, he referred to the famous HG Mudgal case, where the sitting MP was forced to resign for tabling questions in the Parliament (then known as the Provisional Legislature) for personal remuneration.

Additionally, under the section 13 (1) (e) of the Prevention of Corruption Act, possession of disproportionate wealth or pecuniary resources by a public official or by someone on his/her behalf is a crime. This Act mandates that public officials receive income from lawful sources only and they must also declare it to lawful authorities. Punishment for violation is imprisonment from one to seven years and fine.

Dr. Jayaprakash Narayan demanded that the State government must immediately constitute a special court for investigating corruption allegations against public servants under section 3(1) of the Prevention of Corruption Act. The section 3(1) enables the State government to appoint as many judges as necessary. Given these powers, the current debate over whether the probe be handled by a sitting or retired judge is merely sidetracking the issue.

To eliminate the influence of political pressures, he also demanded that a special prosecutor with impeccable credentials should be appointed by the Chief Justice of High Court to probe the issue. Constituting an Inquiry Commission would be a time-consuming process as the findings of such commissions cannot be acted upon directly and would have to be placed in the court of law for further trial.

Lok Satta Party also demanded that if a public servant or her/his family members are charged with holding disproportionate assets then the burden-of-proof must lie with that public servant.
He also called for immediate implementation of Benami Transactions (Prohibition) Act, 1988, which precludes the person who acquired the property in the name of another person from claiming it as his/her own.

Lok Satta Clarifies Stand on Power Subsidies and Subsidised Rice

2007-10-15T14:55:00.001+05:30

Dear Sri Sainath,

I invite your kind attention to your column on Oct 12 in The Hindu: ‘Incredible India’ right here at home.

[Click on the link below for the article on Hindu

http://www.hindu.com/2007/10/12/stories/2007101255291200.htm]

You made a reference to Lok Satta Party’s (LSP) platform on subsidies. I would like to clarify the Party’s stand on power subsidy to farmers and subsidized rice.

1. Power subsidy

Lok Satta Party believes that the debate on power tariff for agriculture is skewed. In the AP context, TDP government collected about 2 – 10% tariff through slab rates (Rs 50 per HP. Later raised to Rs 250 per HP). The current Congress government is offering it free of cost. All that is being debated is whether power should be free, or upto 10% of tariff should be collected. LSP believes this is a spurious debate on a non-issue for the following reasons:

Un-metered power, poor distribution management, and corruption are causing loss of nearly 27% of power.

Farmers are getting low quality power with voltage fluctuations, and often motors get burnt about twice a year on an average. Each time repairs cost about Rs 2000 – 3000, resulting in an annual expenditure of about Rs 5000 for each farmer with an agriculture pumpset.

Villages get very poor quality of power, often interrupted by outages or load shedding. In many villages about 6 hours’ power supply in summer is the norm. Even PHCs and schools run without power.

Corruption is rampant in power sector at every level.

Lok Satta movement outlined all these problems as early as in 2000, and argued for decentralized distribution management with effective energy auditing. Lok Satta Times’ issue of October 2000 examined the issue in detail. A team of experts including late Dr Tatarao, Sri Balaramireddy, Sri TL Shankar, Capt Jalagam Ramarao, Sri KP Rao and Sri SR Vijayakar examined the power sector crisis and recommended solutions.

As a result of Lok Satta’s advocacy, four feeder lines in Andhra Pradesh were handed over to franchisees for effective distribution management. The results, despite bureaucratic hurdles, corruption and lethargy, were impressive. In Kallacheruvu of West Godavari district, the line losses were reduced from 27% to 9% (a saving of 18%). Voltage was fully stabilized in farm sector, and incidence of damage to pumpsets was brought down to zero! Corruption was eliminated with people’s participation. Under one feeder alone, over ten youngsters were trained and employed in a sustainable manner.

Lok Satta Party has been advocating replication of such a model in the whole state. The power savings will be of the order of Rs 2500 crore, about 100,000 jobs will be created, voltage will be stabilized, and villages can be supplied quality power round the clock. Our party has made a public commitment to achieve these results. In such a model, power tariff for agriculture is a short-term, marginal issue. Farmers can be assured quality supply, villages will get 24 hour power supply, and the power subsidies can be continued for sometime until farmers’ condition improves. This rational management of power sector is Lok Satta Party’s stand; not casual and irresponsible populism. Sadly, given the low quality of our public discourse and lack of depth in debate, issues are seen in simple ‘Yes’ or ‘No’ terms.

2. Subsidized Rice:
Lok Satta Party has not offered any additional food subsidies. We are merely committed to two things:

Better targeting of all food subsidies including free rice now available to the indigent (Annapurna Antyodaya scheme).

Transfer of public distribution to the district government, and offering the subsidy saved by better targeting as an incentive to the local government to enhance its resources.

Right now, for a population of under 8 crore, 1.8 crore families are covered by food subsidies to which the poor one entitled. Official rural poverty figures in AP are at 16%, and probably 30 – 40% people deserve food subsidies. And yet, over 90% of the people are covered now! Despite this there are lakhs of poor families which do not have a ration card! This is what needs to be set right, and Lok Satta Party is committed to revamping the public distribution system.

I hope you will take note of our stand and inform your readers, so that serious and rational debate on subsidies can be promoted.

With warm regards,
Jayaprakash Narayan
(National Coordinator)

Lok Satta's agenda a great hit, says Dr. Jayaprakash Narayan

2007-10-11T14:16:00.000+05:30

Please click on the link below
http://www.loksattaparty.com/english_site/hit.pdf

Dr. J. P. Pleads for Assistance to Police Official’s Family

2007-09-04T21:39:00.000+05:30

Lok Satta Party’s National Coordinator Dr. Jayaprakash Narayan (Dr. JP) today requested Chief Minister Dr. Y. S. Rajasekhara Reddy to provide all relief and help to rehabilitate the family of Mr. E. Madhava Reddy, Sub Inspector of Police, Malakpet, who was fatally mowed down by a speeding lorry as he chased and tried to stop it. “There cannot be a more painful incident than this in which a uniformed police officer was disobeyed and run over by a wayward lorry driver in a wanton act of culpable homicide”.

Dr. JP suggested that Mr. Madhava Reddy’s family be extended benefits on the lines of police killed in extremist operations. Under the policy, the Government treats deceased functionaries as on duty until retirement and provides wages and allowances to the family. In addition, one of the surviving members of the family is provided a Government job at an appropriate level depending on educational qualifications.

Dr. JP wanted the Government to ensure payment of wages and allowances to the family of Mr. Madhava Reddy until his retirement and pension after the retirement age. Mr. Madhava Reddy’s son, aged 26 and a Bachelor of Science, be appointed assistant sub-inspector as a special case. “Such a gesture from the Government would enhance the morale of all serving policemen and give them the strength and confidence to discharge their duties in the face of danger and adversity”.

Dr. JP called on members of the family of Mr. Madhava Reddy in the morning and conveyed his condolences.

In his letter, Dr. JP said the death illustrated the malaise afflicting the public order machinery. “We have eroded the self-esteem, confidence and image of the police severely, and as a result lawful orders of uniformed officers are ignored with impunity. The culture of permissiveness is a direct consequence of undue political interference in the day-to-day functioning of the police…”.

Dr. JP called for making crime investigation independent and isolated from political influence and professionalization of law and order police.

Stamp Out Terrorism, Appeals Dr. JP

2007-08-26T21:49:00.000+05:30

Lok Satta Party's National Coordinator Dr. Jayaprakash Narayan (Dr. JP) said today that terrorism had to be uprooted ruthlessly to protect society and civilization. In a statement, Dr. JP described terrorists, who took the lives of innocent people through bomb blasts in Hyderabad, as cowards.

"No religion sanctions terrorism although its perpetrators invoke religion for their acts. Terrorists are essentially barbaric people who have nothing but hatred for mankind and all values of civilization."

Dr. JP said blaming the police and Intelligence agencies for failure to prevent terrorist attacks was unwarranted. Even if Intelligence had information about likely terrorist attacks, they would not know when and where they would strike.

In times of crisis, people, political parties and the Government should stand united and do nothing to disrupt normal life. Calls for 'rasta rokos' 'bandhs' would merely serve the cause of terrorists, who were bent on destabilizing the country.

Dr. JP said that Governments in their bid to stamp out terrorism should not abridge people's fundamental rights. China could do without terrorism because it had a totalitarian system. "The need of the hour is striking a fine balance between national security and civil rights."

Dr. JP underlined the need for police reforms to ensure that the personnel were productively utilized. While thousands of police personnel were deployed as gunmen, intelligence personnel were used to serve the interests of the ruling party. Dr. JP in the morning called on the blast victims undergoing treatment in hospitals. Eleven Lok Satta volunteers donated blood to Chiranjivi Blood Bank for the benifit of victims.

Citizen, Wealth and Society

2007-04-10T15:49:00.000+05:30

To Paraphrase Dickens, we seem to be living in the best of times, and in the worst of times!

On the one hand, there is undiluted exultation among growth enthusiasts. Low tax rates, 9% growth, high savings, declining deficits – all seem to be promising. “If only we pursue the reform agenda, particularly in pension, insurance, and labour sectors, things will only get better”, claim market fundamentalists.

On the other hand, there are signs of deepening political unrest. Repeated political setbacks and mid-term rumblings in the ruling coalition, the agrarian unrest, violence in Nandigram leading to tragic deaths, and the killing of 55 unfortunate policemen in Chattisgarh by Maoist guerillas – all these paint a more somber and distressing picture. Which of these two versions reflects the reality? And what can the society at large, and the wealthy segments in particular, do to protect the gains of reform and minimize the social strife?

It is now universally acknowledged that the ‘invisible hand’ of the market is a greater force of common good than the benevolence of the rulers. But even 30 years ago, this was not so obvious. I entered government service as a starry-eyed socialist with great faith in the power and intentions of the State. Then, in early 80’s, my stint as special officer of Visakhapatnam Steel Project, then India’s largest public sector project (Rs 8000 crore), looking after land acquisition, rehabilitation, labour relations and public order issues, cured me of my illusions. I learnt to my consternation that public sector in India is largely the private sector of those in public office, giving endless opportunities for pelf, privilege, patronage and petty tyranny. Mercifully, things have improved since then with progressive expansion of competition and choice. The communications and consumer goods revolution, and accelerated growth are two obvious gains of liberalization.

But the market cannot be the panacea to all our problems. The state clearly cannot abdicate from key sectors. Without creating opportunities to the poor for vertical mobility, we cannot promote equity or growth. Even in developed democracies, there is evidence that birth and wealth are determining a child’s future much more than talent and hard work. Despite the avowed classlessness of American society, the bottom quintile of population is finding it harder than ever before to reach the top quintile. Such social stagnation is not only detrimental to harmony, but it also undermines growth as the talent and potential of a large section of people are underutilized. The state in modern world has a vital role in helping fulfill that potential, and preventing avoidable suffering.

But what about society, particularly the privileged and wealthy segments? Do they have an obligation to society beyond wealth creation in search of profits? Market fundamentalists may argue that it is glorious to be rich, and greed is good; therefore pursuit of wealth in self-interest is the best contribution the wealthy can make. But that is not how the capitalist West behaves! The charities of Bill Gates and Warren Buffet are known to all. The great North American Universities of Harvard, Yale, Carnegie Mellon, Johns Hopkins, Cornell, Vanderbilt, Stanford, McGill, Duke, Illinois Institute of Technology and Vassar College were all built through private charities. Smithsonian Museum, and several foundations – Ford, Kellogg, Rockefeller, Mellon, Carnegie and Kresge – are all promoting public causes with private funds. Those wealth creators understood the best value their money could get, and pursued public causes with vigour.

There are three areas in which private fortunes can promote public good in contemporary India. First, wealthy citizens must work for political transformation. The recent by-election for Lok Sabha in Karimnagar (AP) is widely believed to have cost nearly Rs 90 crores for the parties and candidates – mostly for vote buying. Chamundeswari (Karnataka) by-election to State Assembly easily holds a record for expenditure, at over Rs 50 crore! In some cases, the vote of a MLA in the Legislative Council election in AP is rumoured to be costing Rs 1 crore! These astronomical sums show how politics has become big business, with attendant corruption, cronyism and perversion of justice. The competition and wealth creation are bound to suffer in such a political climate. The wealthy would be wise to invest a part of their fortunes in creating new politics for the new generation, and make politics again a moral endeavour. Or else, the political rot will devour the robust economy sooner, than later.

Second, education and healthcare need not only public attention, but private funding through charities also. If Bill gates and Warren Buffet dream of elimination of all preventable diseases all over the globe, our wealthy entrepreneurs can fund these activities in our own country. If the poor are driven to desperation for want of opportunities, it will hurt the whole society and economy. The collapse of higher education and inadequacy of school education are there for all to see.

Finally, many public goods – libraries, museums, parks – can be funded by private charities. Our cities are becoming unlivable concrete jungles and ghettos, even as real estate prices are skyrocketing. If we value our quality of life, we need to improve our own neighborhoods. The true legacy is what we leave for posterity in the form of public good, not the fortunes our children inherit, making them smug and slothful.

It is time that those who, by talent and hard work, or birth and privilege, command vast resources stood up for larger public good in their own enlightened self-interest.

Dr. Jayaprakash calls for justice to Telengana

2007-03-06T13:53:00.000+05:30

Dr. Jayaprakash Narayan, National Coordinator of the Lok Satta Party, today demanded that constitutional status be provided to regional development boards, the 610 GO be implemented in letter and spirit and that the next river water tribunal go into disparities in water allocation within different regions of the State. These issues should be sorted out whether Telanagana was going to be formed or not.

Addressing a media meet, Dr. Jayaprakash pointed out that regional development boards recently constituted did not enjoy any constitutional status of Article 371D of the Constitution. The Constitution should be amended to provide them constitutional status, powers and resources. In fact, the Telangana Regional Development Board could be entrusted with the implementation of Government Order No. 610.

Dr. Jayaprakash pointed out that neither the Congress nor the Telugu Desam Government had the political will to implement the G.O. issued as early as in 1985. The Congress was in power between 1989 and 1994 and again since 2004 while the Telugu Desam was in power during the other periods. The GO involved the repatriation of just 28000 of the 9.5 lakh Government employees from Telangana to Andhra.

Referring to regional disputes on the sharing of the Krishna and the Godavari river waters, Dr. Jayaprakash said the next river waters tribunal should go into allocation of waters among different regions within the State. Thanks to Sir Arthur Cotton, some coastal Andhra districts had benefited while Telangana and Rayalaseema did not get adequate waters. The Godavari and the Krishna should be treated as one basin since the Krishna waters cannot be diverted to the Rayalaseema region unless the Godavari waters are diverted into the Krishna basin downstream.

Dr. Jayaprakash called for a national debate on caste-based reservations in the context of the raging disputes between Malas and Madigas in Andhra Pradesh and Gujjars and Meenas in Rajasthan. Treating castes as vote banks, most political parties were indulging in cynical and manipulative games. He made it clear that the Lok Satta was totally in favour of reservations so long as birth-based discrimination continued. He, however, wanted the reservation system to be refined. Any scientific system should give weightage to factors like caste, economic status, parents' educational status, rural or urban background, education in Government or private school and medium of instruction.

On Special Economic Zones, Dr. Jayaprakash said that they should not be constituted in agriculturally prosperous land except in rare circumstances. He suggested that farmers be paid more than market rates for their lands and be given one acre of developed land for every two acres acquired for them. This can be done if more land than is required for an SEZ is acquired.

A great opportunity squandered

2007-03-02T19:19:00.000+05:30

Mr. Chidambaram enjoyed great advantages while presenting this year’s budget. The growth rate is impressive, and by all accounts sustainable in the medium term. Revenue increase is the highest in recorded history. Fiscal deficits are at last being contained. Savings rate is almost one-third of GDP. And the government is politically stable.

Considering these advantages, the FM seems to have squandered a priceless opportunity to set a new direction, and give concrete shape to the vision of inclusive growth. There are no serious errors of commission, but errors of omission are aplenty. True, there are no new taxes except the 1% additional surcharge on all taxes for secondary and higher education. Import duties have been slashed. The emphasis on agriculture is necessary and justified, but not matched in action.

What are the errors of omission?

First, the actions on agriculture are inadequate. Focus on seeds, more credit and replenishing ground water reserves and improving water harvesting is welcome. But there are other glaring areas which remain unaddressed. Most farmer suicides pertain to cotton growers. The unfair advantage to OECD farmers on account of high farm subsidies ought to be neutralized by increasing import tariff on cotton. The real challenge of agriculture is establishing market linkage and creating value addition to agricultural produce to enhance rural incomes. Credit cooperatives are still under stultifying government control, and over 60% of farmers have no recourse to institutional credit. Aggressive measures to restructure and liberate cooperatives along with cash support are necessary. The Budget failed to act on all these fronts.

Second, the effort to improve ITI’s infrastructure is welcome. But there are millions of educated youngsters who lack skills and are unemployed. Despite high growth rate, employment in organized manufacturing sector remains stagnant. Even I.T. and other sectors are handicapped for want of skilled workers. A massive national programme for skill promotion is vital today. The FM failed to address this issue of employment and skill promotion.

Third, FM did initiate a modest social security scheme for the unorganized poor. But it is too modest to make an impact. 92% of our work force is in unorganized sector. Out of the nearly 40 crore such workers, FM’s proposals touch only 15 million families, of which 7 million will get support this year. This is too anaemic an approach to make a serious impact on the plight of the unorganized workers.

Fourth, while Education allocations have increased, and school enrolment has improved, outcomes are far from satisfactory. In healthcare, even allocations are paltry, still stubbornly remaining below 1% of GDP. And there is no effort to create new incentive mechanisms to guarantee quality healthcare to all. As a result, despite rhetoric on social sector, allocations are insufficient and outcomes are poor. The Budget failed to address these fundamental issues.

In infrastructure sector, power and urban transport pose formidable challenges. Power sector net losses are about Rs. 26,000 cr. per year, and subsidies touch almost Rs. 40,000 crore. Distribution improvement with local participation is the key. The budget indicates that the government has thrown up its hands in despair in this vital sector. In urban transport, low cost, effective choices need to be given incentives and promoted. No such effort is discernible in the Budget speech.

Handicrafts sector has been plagued by years of neglect and decay. Support to a few handloom clusters is welcome, but insufficient. A national programme of diagnostic survey of all handicraft clusters, and support by way of credit, technology, infrastructure, skills and marketing are critical. If revival of certain handicrafts is unlikely, then promotion of alternative skills and reemployment are necessary. The Budget does not explore these options.

There is huge migration to big cities, and villages are getting depopulated. A concerted effort to promote in situ urbanization to provide amenities and services and encourage local migration through market incentives is necessary. The Budget simply ignores this mounting challenge of unchecked migration and rise of urban poverty.

The real estate boom has further boosted the black economy. A comprehensive approach to provide house sites and housing to urban population, and promote open transactions to curb the menace of black money is needed. For instance, long-term capital gains tax on land can be significantly reduced. The FM left this whole sector to realtors and land grabbers, allowing serious distortion of market prices and continued real estate bubble which could seriously undermine our economic gains.

Finally, the Budget did not pay any attention to the economic aspects of governance challenges. A nation-wide land survey and digitization of records are needed; the police forces needed to be modernized to meet the growing challenges in a humane and effective way; the court system needs to be expanded and made accessible. All these need significant investments and incentives and support to states. The Budget ignored these sectors while making allocations.

All in all, a great opportunity has been squandered.

Jayaprakash Narayan

Will the FM Grab the Opportunity?

2007-02-25T13:57:00.000+05:30

Friends,

Probably, no Finance Minister had it so good as Mr. Chidambaram now. Our growth in robust and confidence is high. The government is stable, and most free market policies are accepted across the political spectrum. The FM may not be able to repeat the ‘dream budget’ of a decade ago, when direct taxes were reduced dramatically and the process of liberalization was given a fresh impetus. But he can reshape the future with next week’s budget.

But the good news is tempered by signs of uncertainty. Inflation is rising, even as farm sector languishes. This is a classic case of neither the farmer nor the consumer being happy! Power and transport sectors continue to be in serious crisis. With employment in manufacturing remaining low, the demographic ‘dividend’ can soon turn into a nightmare. Productivity remains low, with poor education and health status holding back our population. As the Economist fears, there are enough portents of trouble which can derail our growth engine.

What then could be the focus areas of this budget, a part from the widespread expectation of reduction of import duties? Five areas need urgent attention, and this budget could mark radical departure in all these sectors and make 10% growth in the next decade a reality.

First, the focus should be on education. It is sad that even now we only emphasize enrolment and literacy, and Sarva Siksha Abhiyan is our only flagship programme. Despite allocations in primary education, outcomes are appalling. Enrolment has picked up; but recent surveys (ASER 2005 and 2006) indicate that most of our children are not benefited. 28.5% of all rural children in 11-14 years age group attending both private and public schools, are not able to read a short story (one paragraph) of grade 2 difficulty; 45% cannot do a simple arithmetic division. We need to invest in teacher training, inspections, random tests to measure outcomes to enable midcourse correction, and stake-holder empowerment. And we need to quickly put in place a massive programme for imparting quality secondary education. We cannot sustain a modern economy or a robust democracy with only a smattering of literacy. Every child must be guaranteed twelve years of school education which prepares her for productive work or higher education.

Second, our health care continues to be in shambles. The National Rural Health Mission is a modest beginning, but not good enough. Public investment must rise to at least 2% of GDP by 2011. Even more important, the incentives need to be altered by risk-pooling mechanisms, money following the patient, and local control and accountability. A nation which aspires to be a big power and an economic giant cannot allow 80% of children and 56% of women to be anaemic, and millions of people meeting untimely deaths and families facing economic ruin on account of sickness.

Third, the bulk of young people joining labour force have neither skills nor opportunities to be productive workers. Our organized work force in manufacturing sector is still of the order of only 6 million, constituting 1.3% of the labour force. About 100 million youngsters will join the labour force over the next decade. Most of these new entrants are eager to create wealth and make a living, but lack the skills and opportunity. In the long term meaningful education should impart skills. But these youngsters are waiting today for work. Therefore, a massive national programme to impart skills to make them employable is vital. Its cost will be modest, and gains in social harmony and economic growth will be immense. Coupled with that, labour laws need to be liberalized, to stimulate small and medium enterprises and promote employment.

Fourth, agriculture continues to be in crisis, even as a storm is raised over increase in prices of pulses and onion. Several steps should be initiated to stimulate rural economy; effective market linkages to assure fair price to both farmers and consumers; increase in import tariff on cotton to deny subsidised OECD farmers advantage at the cost of our farmers; massive promotion of value addition of agricultural produce along with infrastructure for storage and preservation; and improved credit through rejuvenation of cooperatives. The FM should launch a massive programme to assist states, provided they come forward to liberate markets and cooperatives from bureaucratic clutches. Our agricultural market committees in most parts of India, except in Punjab and Haryana, where Sir Choutu Ram’s Mandi Act created robust markets, have become dens of corruption and patronage. The plight of cooperatives under stultifying state control is well known. Vidyanathan Committee made practical recommendations, and the FM needs to act on them.

Finally, power and transport sectors need special attention. Decentralized distribution of power through the community or franchisees, metered power distribution with effective energy auditing and massive up-gradation of distribution network to prevent technical losses are vital to transform power sector. Our cities are slowly getting paralyzed because of bad transport, and economy is bound to be affected as growth is increasingly urban. High cost public transport choices like tube rail (about Rs. 150 Cr per KM) must give way to low cost models like rapid bus transport system, and integrated management of rail and road transport.
The current mood of optimism and robust revenues give the FM a priceless opportunity to accelerate growth and sustain it, while promoting equity and harmony.

SEZs and Stakes for All

2007-02-12T15:23:00.000+05:30

The government’s announcement of review of the policy on rehabilitation of land-losers in SEZs indicates the complexity and contention involved in land utilization and industrialization in a densely-populated, poor country like India.

Two major criticisms have been leveled about SEZ policy. The first is that the government should change the overall policy and legal environment to promote economic activity, instead of creating islands which are free from regulatory obstacles. This is a valid point in principle. But in a vast and diverse democracy, changing the policy and legal environment for the whole country is easier said than done. Such far-reaching changes, however desirable, are time-consuming, and involve painstaking negotiations and long-term engagement to build a consensus. Therefore, the short-term booster to economic investment through SEZs is a sensible policy tool, provided it presages long-term change of investment climate.

The second criticism in that the incentives offered are excessive and inequitable, and will entail revenue losses. A closer examination shows that SEZ incentives are largely the same as those available to export-oriented units. The one exception is SEZ units can participate in trading activities. It makes sense that these economic incentives should be uniform throughout the country, while other policy and regulatory incentives will, of necessity, be applicable to notified SEZs for the time being. The loss of revenue on tax-incentives is notional, and the argument that the additional investment growth and jobs will more than offset this revenue loss is reasonable.

In addition to these policy issues, there are five operational issues which need to be addressed immediately. First, what kind of land should be acquired for SEZs? The government policy is both fair and reasonable. The government says that mainly waste and barren land and, if necessary, single crop agricultural land alone should be acquired. Location-specific industries (port-based etc) may sometimes require valuable agricultural land. Otherwise, the stated policy should be strictly enforced. The claim that loss of cultivable land will undermine food security is exaggerated. Conversion of 100,000 ha of land, or even more in future, would reduce farm land by less that 0.1 percent. With the decline in share of agriculture in GDP, greater industrialization and shift of occupations are both necessary and inevitable. India cannot continue to be a largely agrarian economy if we harbour ambitions of rapid economic growth and global power status.

Second, should land for SEZs be bought on market principles or acquired by compulsion through state power? The land acquisition law and past precedents do permit the state to acquire land for a company for a ‘public purpose’, and industrial growth does qualify as public purpose. If needed, the law can be amended to make it more explicit. But as a rule, it is preferable to encourage private purchase through market mechanisms including negotiations and bidding. However, there are occasions which warrant state intervention. For instance, a recalcitrant owner of one critical but small piece of land can thwart the whole project by demanding abnormal price or refusing to sell; or a location-specific industry needs land which owners are unwilling to sell. In such cases, land acquisition may be the last resort, and even then fair price should be fixed through negotiations rather than depending on registered sale deeds (declared sale prices are often undervalued to avoid stamp duty or conceal black money).

Third, how do we ensure that land losers have stakes in SEZs? Mere ‘compensation’ at current market prices is insufficient when the asset value would appreciate significantly. Land losers suffer the heart burn of relative deprivation as the values skyrocket, and their neighbours benefit from their sacrifice. One elegant and equitable solution would be to treat part of the land as equity in the project. In addition to the normal compensation, the land owner could have right of owning a part of the developed land in the SEZ. This could be about 10% in industrial projects, and 20% in infrastructure projects. With huge real estate boom, even 10-20% of the land would fetch the owner multiple returns relative to the original compensation. Such equity stakes will make SEZs attractive to the land losers.

Fourth, the displaced persons need to be imparted skills necessary for wealth creation, and absorbed in the projects coming up in SEZ as far as practicable. In 1985-86, a massive project was undertaken to train 8000 youngsters in displaced families of Visakhapatnam Steel Project (Now RINL), and all of them are now productively employed. Until that training, the displaced persons sought employment without skills, and the project officials could not engage that many peons and messengers in a modern steel plant! A national programme of equipping unemployed youth with skills is overdue in any case, and SEZs should be the starting point. Once SEZs provide local employment, much of the resistance will disappear.

Finally, how do we integrate SEZs in the local governments, even as their autonomy is assured? In AP, in 1996, the industrial infrastructure corporation created a viable and successful model. The local entrepreneurs were handed over the management of the industrial estate, and were given the authority to raise service charges (‘taxes’) from the units/plots in the area. An agreement was concluded between the local government and the industrial estate, transferring 30% of the taxes raised to the municipality. In effect, the industrial township subsidized the municipality while quality of services and local autonomy were protected. Such an innovation would be ideal for SEZs.

There are bound to be some losers in any growth process. But with sensitivity, openness and innovation, we can create stakes in growth for all groups.

Jayaprakash Narayan

A clarification

2006-12-28T11:34:00.000+05:30

Friends,
Several of you have sent emails on the Margadarsi issue and Lok Satta Party’s stand. Clearly, there has been a misunderstanding about our position. I gave a statement in good faith with an intention to raise the quality of public debate, and focus on key issues in dealing with financial institutions. We have neither supported, nor opposed any individual, group or party.

The statement essentially outlines three objectives in dealing with such matters.

Protecting depositors’ interests: Deft handling by regulatory agencies is required to prevent a run on deposits.

Promoting financial stability: Trust in institutions is critical to prevent a cascading effect and eventual collapse.

Role of the Regulator: The RBI, as the Central Bank, has an impeccable record of regulating financial institutions and laying down monetary policy. The Central Bank must act to protect the depositors, prevent cascading effect, penalize wrong doing, and it must be allowed to do so without fear or favour.

All these are unexceptionable points made in the hope that the quality of public discourse will be enhanced by reason, dispassionate analysis and a problem solving approach.

At no stage did Lok Satta Party attack any party or government, nor did it support any individual or group. However, when society is aroused by passion with great ease, it seems to be difficult to steadfastly pursue public interest sans partisanship. Several people misconstrued our comments as unreserved support for a business group, or unrestrained attack on the government. A careful examination of facts clearly proves otherwise.

This stand on preventing a run on deposits is consistent with the Lok Satta’s movement’s stand, earlier, when urban banks were collapsing. Lok Satta then strongly criticized the government’s inept handling of the situation and argued for a revolving fund with contributions from banks and governments to give confidence to depositors.

Lincon once said, “Public opinion is everything; without it nothing can be done, and with it nothing can fail.” In this case, people are divided on the issue and positions are taken easily, and articulated with passion. Once we had realized that for a Party dedicated to creating new politics for a new generation, this issue is a needless digression, I publicly stated that Lok Satta Party would serve public interest better by staying away from the issue. Since then, we have maintained silence on the subject.

Some of our friends and well – wishers have, obviously, strong views on the subject, and they are entitled to them. Lok Satta Party has no interest in the matter, except to protect the interests of depositors and promote rule of law.

I hope you understand and appreciate the fair, balanced, rational, legally correct and morally sound position of Lok Satta Party on this issue. Some may still disagree, and we respect their views. But we have an excruciatingly difficult task of building a better democracy, and we need to put this episode behind us. The nation’s future and the opportunities created for all children irrespective of birth are far too important to permit needless digressions.

Breaking the realty-black money nexus

2006-11-03T16:47:00.000+05:30

Dear Citizen,
In the midst of robust growth indicators, one issue which is causing concern is the black economy and the role of real estate in that. Some estimates put this parallel economy between 25 and 50% of the accounted GDP. The negative consequences of such a large parallel economy are all-too-evident.

Corruption is both a cause and consequence of unaccounted money.

Competition is eroded with tax evasion, and genuine tax-payers find it difficult to survive in the market.
Tax, GDP ratio is depressed as a large part of the economy is unaccounted.

The consequent failure of public services and decline in infrastructure are all evident in India. With poor quality public goods, the poor suffer disproportionately. The consequent decline in productivity affects the whole economy. Parallel economy encourages wasteful expenditure, and resources are misallocated at the cost of pressing national needs. Unaccounted and untaxed money breeds envy and discontent in society. All these causes and consequences of parallel economy are well-known.

In India, real estate is the sector which feels the impact of black money most. Our land prices are shooting up irrationally. True, land is a scarce commodity, and cannot be created. This supply constraint is further aggravated by our cultural obsession with land. Far too many people are in search of land as a safe investment outlet.

While land is a scarce commodity by definition, the demand-supply gap is aggravated by bad policies and misgovernance. Despite our small land mass (2.5% of the world's land surface), India accounts for almost 12% of the global agricultural land. There is also huge potential for developing residential and industrial areas. Mere building of roads and creation of infrastructure will open up vast areas for utilization. Instead, development is limited to small pockets, and real estate prices are reaching the stratosphere.

The new development of townships and special economic zones is hampered because land holders typically want to hold on to their property for speculative purposes. Experience teaches us that land prices shoot up a hundred times or more with even modest development, and therefore no farmer or land-holder is content with the measly 'compensation' offered under the Land Acquisition Act. Even if above market prices are offered to owners, there is severe resentment as farmers do not share in the anticipated prosperity.

High stamp duties have traditionally fueled black economy, as sellers declare sub-market prices to reduce tax liability. In a market dominated by unaccounted money, those who wish to disclose real prices are at a great disadvantage. The seller has to pay high capital gains taxes with full disclosure. If he wishes to buy a property, in turn he has to pay a large part of the sale consideration - typically 50 to 70% - in cash, which in turn needs black money! Most people are therefore forced to evade taxes and further enlarge the parallel economy.

Land registration has always been a source of corruption. Rent seeking for placement of officials dealing with land records and transfer of property is ubiquitous. In turn, the officials extort payments from citizens for all land-related documentation and sale registrations. Absence of periodic land surveys and poor record-keeping have added to the woes of citizens and corporates. Land ownership is difficult to establish, and many innocent buyers have been cheated by unscrupulous real estate agents. This further shrinks supply of reliable land with assured titles, and leads to escalation of land prices.

Corrupt state politicians and bureaucrats are increasingly using their control of government land and land records as a source of patronage and extortion. With the decline of license-permit raj, control of land has become one of the key sources of corruption. The state politicians can dramatically alter the fortunes of favoured individuals and corporates by allotment of land.

There is no rational policy for land allocation, nor is there a proper assessment of realistic needs.
In alienation of government land, market does not operate, as there is no competition and all decisions are discretionary.
On the few occasions when land is auctioned, the prices are inflated unrealistically as realtors indulge in strategic high bidding to enhance the market value of their other assets, or some buyers pay unreasonably high sums in a state of irrational exuberance.
Rent control laws have further inhibited development of land, and created scarcity by diminishing supply.

Clearly, unrealistic real estate prices, huge black economy and phenomenal corruption are a drag on the economy. This will eventually inhibit growth and enhance the risks to individuals and businesses.

The government can act in a few simple ways to disentangle the complicated mess we have created over the decades.

First, supply can be enhanced by opening up more land for development by building roads and infrastructure.

Second, stamp duties need to be rationalized, and land records updated by periodic surveys and computerization with full public access to all information.

Third, in all developmental projects like special economic zones, land losers can be given equity in the form of ownership of a portion of the developed land. This will give farmers a share in the prosperity and make available more land for development.

Finally all alienation of land for profitable activities should be non- discretionary and by public auction.

Simultaneously, a few concomitant steps need to be taken to curb black-money in land related transactions.

Giving right to charities to acquire land at 50% above the declared purchasing price within 6 months.
High vacant land tax to inhibit speculation without development; and
A reasonable estate duty on inheritance of non-agricultural land are measures which promote transparency and equity.

The governments need to act with clarity and good sense before our growth is hampered by irrational land prices and the growing black economy.

Rehab deal for farmers won't stem suicides!

2006-10-31T11:30:00.000+05:30

My fellow citizens,
The union government's announcement of the Rs.17,000 crore rehabilitation package for farmers in the 31 suicide-prone districts of AP, Karnataka, Kerala and Maharashtra focuses attention on the plight of agricultural sector in a fast-growing economy.

Emphasis on irrigation, interest waiver, watershed development, seed replacement and dairy industry is welcome.However, the deeper causes of agrarian crisis need to be critically examined and addressed.

Three fundamental long-term trends have led to the prolonged crisis.

First, agricultural commodity prices have been declining world-wide and in India for decades.

The recent growth spurt in global economy witnessed steep rise in the prices of industrial raw materials.But food prices are stagnant, as greater prosperity does not increase food consumption beyond a point, and higher production actually depresses prices.

Second, the restrictive trade and pricing policies of agricultural commodities had caused immense damage to farm sector for decades until the 90's, and weakened rural economy and farmers' capacity to withstand shocks.

Belated efforts to restore balance in the terms of trade coincided with accelerated shift to services, leading to neglect and decline of agriculture.

Third, the share of agriculture in the gross capital formation (GCF) fell dramatically over two decades from 15.4% in 1980-81 to 8% in 2001-02.

As a share of GDP, GCF in agriculture fell from 3.5% to 1.6% during this period.

The crisis has been aggravated by distorted priorities and irrational policies of governments over the years. Three examples will suffice.

Free power or un-metered power at fixed slab rates promoted excessive investment and over exploitation of ground water, and eventually led to water depletion, failed tube wells, indebtedness and impoverishment.

Stultifying state control and consequent corruption and cronyism in cooperatives undermined a potentially vibrant support system, denying farmers credit, quality inputs, market access, processing facilities, technology and management.

Undemocratic and unaccountable control of markets in most states denied farmers market intelligence and bargaining power, and made them vulnerable to money lenders, extortionists and mafias.

The misery of rural populace has been compounded by the criminal neglect and failure of state in education and healthcare. Even poor farmers and labourers are forced to spend huge sums out-of-pocket for indifferent private schooling and hospital costs. A high proportion of rural families incur huge debts at usurious interest rates to meet rising hospital costs, driving many to despair.

Even a casual glance at the comparative trends of GDP growth in farm and non-farm sectors indicates the magnitude and gravity of the crisis afflicting agriculture.

About 55% of the population dependent on agriculture shares only 20% of the GDP.
In effect, the income per capita of this vast population is only one-fifth of the rest of the people dependent on industry and services.
With agriculture growing at 2% and the rest of the economy recording over 9% annual growth, the share of agriculture is failing each year by almost 1% of GDP. If the current trends continue, agriculture's share of GDP will decline to about 14% by 2014.

Even maintenance of the income per capita differential of 5:1 between other sectors and agriculture would require a shift of about 11% of population from agriculture to non-agricultural occupations, reversing the current ratio of 55:45.

Given the slow rise in employment opportunities in non farm sector, such a huge occupational shift seems impossible; which means that agricultural incomes will register a further relative decline from the current ratio of 1:5!

Clearly, the majority of the population has no place in the growth bandwagon, making rapid growth unsustainable, and society and polity unstable.

The farm crisis needs a robust, all-out response from the Indian state. Certainly we need to invest heavily in agriculture, harness every drop of water, and enhance productivity through better inputs and extension. But much more needs to be done.

First, wherever farmers need protection from cheap imports, tariffs need to be raised. Cotton is a good example. Foreign governments are heavily subsidizing their cotton farmers, and Indian farmers are unable to compete because of low import duty. It is no accident that a large proportion of suicides are in cotton belt.

Second, national policies must be pursued in respect of ground water, cooperatives and markets. Judicious price incentives will remove distortions in ground water use, and democratization, member-control and competition will liberate the cooperatives and agricultural markets from the clutches of corrupt politicians and bureaucrats, and unscrupulous money lenders and mafias.

Third, the focus should be on value addition, particularly in case of perishable crops. Extreme price fluctuations and distress sales can easily be prevented by creating a network of processing industries, guaranteeing fair price to both farmers and consumers.

Fourth, a massive programme should be launched to promote high value crops like medicinal plants, and bio fuels. India is well-placed to take advantage of the next agricultural revolution in the offing, as both food and fuel will compete for the same land, with the end of the era of cheap oil.

Fifth, special attention needs to be paid to artisans, occupational groups, animal husbandry, poultry and fishery sectors. Agricultural crisis acutely affects the artisans and occupational groups in villages, and skills, credit, market linkages and a measure of social security to them are critical. Sixth, we need to develop urban amenities in rural areas and promote non-farm activities and services sector.

Finally, the state needs to focus on its core functions and guarantee good quality, accessible, free education and healthcare to all citizens.

Much of the rural distress is the consequence of state's failure in basic services.

We cannot sustain high growth rates, nor can we alleviate rural distress, without transforming our politics and governance.

Make the poor more productive

2006-09-05T14:20:00.000+05:30

Dear friends,
The impact of economic liberalization on poverty levels in the country has been vigorously debated by economists and politicians over the years.

The data seems inconclusive, and scholars often seem to arrive at conclusions suspiciously close to their own ideological proclivities. The broad consensus appears to be that poverty is declining; it is difficult to conclude that the decline in poverty is attributable to liberalization and rapid growth; and the decline in poverty is less than what the free market enthusiasts hoped.

Ultimately, from the perspective of those who are neither investors enjoying dividends or capital appreciation, nor owners of fixed assets enjoying rental income, employment and income are the key determinants of economic prosperity.

Employment statistics may give us a better indication of the impact of growth on the lives of the poor.

The findings of the six quinquennial surveys of NSSO on employment situation between 1977-78 and 1999-2000 make interesting reading.

· The proportion of those employed in the population has been higher (380-390 per thousand) in rural India in the period 1988-2000 than in urban India (315 - 324 per thousand).

· Correspondingly, the number of unemployed persons per thousand population has been higher in urban India (18-22) than in rural India (7-12) during same period.

· In general, all over India, unemployment fell during 1988-94 (from 22 to 18 per thousand in urban areas, and from 12 to 7 in rural areas), and remained unchanged during 1994-2000.

Clearly, higher growth has not made a significant dent in unemployment.
Also a higher proportion of population is employed in villages than in towns, though rural employment is at the low end of the value chain and yields subsistence income mostly. Urban unemployment seems higher largely because the unemployed rural youth are migrating to towns and cities in search of livelihoods. The Southern and Western states are close to population stabilization levels, and villages are getting depopulated on account of migration.

Unemployment is highest among the 20-24 years age group, just as youngsters enter the job market. Over 85% of all the unemployed are between 15 and 29 years of age. This shows that in most cases unemployment is not on account of lay offs or job hopping. Clearly, young people are considered unfit for employment as they lack skills, and in time they acquire some skills and get employment.

In most advanced societies, unemployment declines with education. As young people acquire new skills through education, they become more productive wealth creators, and are in demand in the job market. The striking feature in India is that in each social group, unemployment rises with higher level of education!

There is a clear and unambiguous link between unemployment and poverty. The percentages of unemployed below poverty line among ST, SC, OBC and others in the country stood at 37.6, 29, 27 and 16.9 respectively. At least 37% of the ST unemployed were living below poverty line, while only 17% of the unemployed belonging to the social groups "Others' were below poverty line.

From this analysis, three broad conclusions can be drawn.

First, migration to urban areas is accelerating among young people of employable age. Villages are getting depopulated on account of lack of job opportunities, and cities are getting congested and the urban poor live in appalling conditions.

Second, education is often of indifferent quality, and there is an increasing disjunction between education and skills. It is not uncommon to find even engineering graduates unemployed, or working for paltry wages of Rs 3,000 per month.

Third, even when employment of some form is available, the wages are low on account of low productivity and little value addition. Jobless growth, or subsistence employment with low wages will neither reduce poverty nor stimulate demand for good and services. Eventually, unemployment will retard both growth and social cohesion.

The state must play a proactive role in employment generation in five areas.

First, a massive programme of skilling of our youth should be launched with participation of public sector, private businesses and financial institutions. Micro efforts of this kind have been very successful, but the challenge lies in their replication on a mass scale.

Second, our education needs to be substantially improved, with meaningful skills imparted at high school and college. Apprenticeships and technology workshop instruction in Germany, vocational technical schools in France, community colleges in the US, and vocational training institutes with internship in Latin America - all have useful lessons to offer. Our own polytechnics and ITIs have largely been ineffective, as the skills imparted are inadequate, the institutions did not respond to changes in the labour market, and there is no interaction with industry.

Third, we need to create economic activity in rural areas by creating urban infrastructure and amenities, and promoting manufacturing and service sectors based on local resources and needs.

Fourth, a significant boost to rural economy is needed by incentivizing value addition to agriculture through post-harvest technologies and agro-processing.

Finally, the state must improve delivery of education and healthcare so that the people at the low end of economic pile can get basic services free of cost, and their productivity is improved.

There is much that needs to be done to eliminate poverty, enhance skills and productivity, and promote employment and incomes. From whatever starting point we examine these questions; the answers are always linked to the nature of our politics and governance. It is time we cleaned up our politics and created a first rate governance mechanism we sorely need, and richly deserve as a people.
Don't you think so?

Magnanimity for the millions on the margins?

2006-07-29T15:52:00.000+05:30

Dear friends,
The spate of brutal killings of Salva Judem members by Maoists in Chattisgarh and encounter deaths of Maoists in Andhra Pradesh expose the fault lines of our society and polity. These are not acts of violence inspired by extra-territorial terrorist agencies to destabilize our nation.

These Maoists are the products of anguish, despair and bitterness resulting from decades of misgovernance and an economic growth process which relegates millions to the margins. The causes are internal and rooted in the alienation of large segments of population on account of denial of opportunities and elementary justice.

Organized violence of all kinds undermines economic growth, destabilizes the society and weakens the nation. However, ideological violence can only be eliminated by addressing the causes of alienation and bitterness, even as the assaults against the constitutional order are firmly repelled. Mere counter-violence and intelligence may deplete Maoists for the time being. But as long as the underlying causes are not addressed, more and more disenchanted citizens are likely to take to the gun to fight the injustices of the system, however misplaced their methods are.

Centuries of vertical fragmentation and social hierarchies led to unimaginable misery and denial of justice and opportunity. The social movements that accompanied freedom struggle gave some semblance of hope to the oppressed sections. The work of Mahatma Jyotiba Phule in Western India, Narayana Guru's remarkable efforts to liberate Ejhavas in Kerala from caste oppression, and Ramaswamy Naicker's Self Respect Movement are three noteworthy examples of such social mobilization for inclusion of sections which were hitherto on the margins of Indian society. The leadership and intellectual vigour of Babasaheb Ambedkar gave a new meaning to the quest for equality and justice, and made it an integral part of our constitutional order.

Sadly, independent India witnessed the decline of social movements. Simultaneously, the political commitment for the inclusions of Dalits and oppressed segments in the mainstream society has been symbolic at best. Issues of real empowerment have been neglected, and politics of tokenism have become the norm. If India pursued robust policies for human development and rapid economic growth, the situation might have significantly improved by now. But excessive state control led to politics of patronage and rent-seeking, and depressed economic growth. Politics of tokenism became a substitute to genuine empowerment and human development. The result is the extremely uneven growth process, and exclusion of large sections of population from the benefits of self government.

Ideally, economic liberalization, competition and the unleashing of the entrepreneurial potential should help bridge the social divide. As skills and capacity for participation in wealth creation determine social mobility, birth and patronage should cease to matter. But tragically, the Indian state did not create conditions for such social mobility. India never created conditions for human development of the disadvantaged sections. The limited educational opportunities created in the early decades after freedom benefited the upper castes, and created a sizeable body of people with skills, knowledge and entrepreneurship. But the Dalits and other disadvantaged sections were largely denied the fruits of education and development. Over the past three decades, the unmet demand led to growth of private education, and state institutions declined. The poor too started sending children to private schools, adding to their financial burden. But much of private education too is sub-standard. As a result, most of the poor children never fulfil their potential, despite the genetic endowment.

Today, the future of nearly 70% of children can be predicted with reasonable certainty on the basis of conditions at birth - caste, literacy level of parents and income. The bulk of the children have no opportunities for vertical mobility. Near collapse of public health systems and low level of skills even if some smattering of education is imparted have further compounded the misery of the poor. Ubiquitous corruption, over-centralization, oppressive state machinery, and failure of rule of law broke the backs of the poor already groaning under social inequity. Discrimination by birth is thus institutionalized, despite a liberal constitution and democratic trappings. Justice is denied to most of the people, and law applied to different people in different ways. Dominance of money and muscle power in elections made politics a huge part of the problem, not the solution.

It is these cruel circumstances which breed anger, alienation and violence. If we do not address these fundamental issues, violence will undo all fruits of freedom and economic growth. And growth itself will be stunted because of violence, and non-participation of the bulk of the people in wealth creation. As the illiterate eke out a precarious livelihood through drudgery, the 'educated' are unemployed for want of skills.

This spiral of violence can be reversed only if we focus on education, healthcare and skill promotion. All parties claim to be committed to these worthy goals. But for these fruits to reach the poor, we need to redefine politics. Politics as business should give way to politics revolving round the people's lives and empowerment. The oppressed sections which depend on the state for education and healthcare must be enabled to truly participate in politics and decision making. Total decentralization of power, comprehensive political reforms to restore the spirit of service to politics, and radical reforms of the police and the justice system to ensure swift and real justice to all sections must be integral to the new political culture.

As Martin Luther king said, "the silence of good men is far more dangerous than the brutality of bad men." The thinking sections need to mobilize the people whose future is at stake, and act now.

What is your take on this issue? I look forward to hearing from you all!

The intelligent way to assuring security

2006-07-29T15:49:00.000+05:30

Dear concerned citizen,
Once again, cowardly and murderous terrorist groups have attacked India's financial capital. Once again, the citizens of Mumbai, in the midst of the shock and grief, have exhibited uncommon courage, resilience and tolerance. As in April 1993, in July 2006, all of India showed how a great nation could transcend prejudice and bigotry, and uphold its liberal, humane traditions.

But the hurt and anger remain, and they need to be channelized constructively and creatively to secure the nation against future dangers. The economic consequences of terrorism are obvious. Direct loss of life, limb and property cause great misery. Disruption of economic activity on account of infrastructure breakdown undermines growth. The psychological impact of terrorism, fear and insecurity could dampen investment, depress capital markets, damage work ethic and lead to gloom and pessimism. The swift and demonstrable return to normal life in Mumbai is the best answer to the terrorists and their foreign backers.

The Prime Minister echoed the sentiments of the nation while paying wholesome tributes to the citizens of Mumbai and Srinagar and asserting that India would defeat the merchants of death and destruction by our resolve and defiance. The Leader of the Opposition rose above politics and focused on unity and national purpose.

These murderous bombings once again show that sleeper cells in Indian cities can be activated at will to unleash horror and destruction. While these cells may be ultimately controlled from Pakistan, the links are increasingly complex, involving several tiers within India, Bangladesh, Nepal, UAE , Gulf region and Europe. The telecommunications revolution and globalization have given enormous advantages to the terrorist outfits, just as they have accelerated growth and promoted prosperity.

The recent spurt in terror attacks in Jammu and Kashmir and the Mumbai blasts show that our national security capabilities need strengthening. In particular, we need to focus on three areas.

First, the intelligence and security infrastructure to fight terrorism needs to be strengthened. In a highly globalised, technologically sophisticated world, this would need greater access to technology, and highly trained, adequate manpower. Investment in these may be expensive in the short term, but could prevent far greater losses later. Our total security related expenditure is about 4% of GDP now. More expenditure would mean diversion of precious resources; but being penny-wise could greatly enhance the risks to our national security and economy. It would be sensible to invest in smart technologies and excellent training instead of massive expansion and visible presence of security forces. Equally important is effective integration and coordination among the many security agencies - R & AW, Military Intelligence, State intelligence wings, and all police forces.

Second, the intelligence agencies need to be given the freedom and flexibility to operate effectively. Democratic accountability should not mean tying up intelligence and security forces in procedural bottle necks. Recruitment of personnel on short-term basis in India or abroad would be necessary from time to time. The heads of intelligence agencies need the freedom to act swiftly and secretly. Similarly, procurement procedures need to be relaxed to suit intelligence requirements. Obviously the IB cannot procure high quality surveillance equipment or other sophisticated gadgets through advertising, open tendering or display of specifications on the web! The authority to discretely purchase state-of-the art equipment to suit our special requirements is vital in order not to alert terrorist outfits and hostile powers. Many such procedures need to be streamlined, with suitably amended processes of accountability, to enhance the capacity of security agencies to cope with growing challenges.

Third, we need to revisit the legal framework which exists to combat terrorism and other threats to national security. Many jurists and security experts argue that the normal criminal laws are not adequate to bring terrorists to book. Witnesses are silenced by fear of reprisals; judges and their families are threatened with violence and retribution; and rules of evidence and standard of proof required to establish guilt have become tools in the hands of terrorists to escape the clutches of law. Foreign nationals determined to undermine our unity and security cannot be allowed to use our constitutional freedoms against us. The imperatives of national security have to be acknowledged and recognized while making laws to combat terrorism. It is better to have strong laws enforced justly and humanely, than to have weak laws forcing the security agencies to act extra-legally. The money laundering law is widely regarded as toothless, and needs to be strengthened so that the international supply chains of terrorists can be cut off.

Finally, domestic political rivalries should not be allowed to come in the way of national security. The union government must be seen to be firmly in command, and its authority needs to be respected whichever be the party in power. A perception of weakness or lack of cohesion will only embolden terrorists. Our democratic system has been our greatest asset to national security, and unrestrained squabbles should not be allowed to weaken the country. Similarly the Union and States should work, and be seen to be working, in concert. For instance, SIMI network is suspected to be involved along with LeT in the Mumbai blasts. And yet, the UP government is said to be reluctant to extend the ban on SIMI. Such discord can only harm the country.

In the ultimate analysis, our security is guaranteed only when all segments of society share in prosperity, and have common stakes in the future. Alienation breeds resentment and violence. Harmony in society and opportunities for all are the best safeguards for the future. Meanwhile, the threats of foreign-sponsored terrorism cannot be underestimated. We need to do whatever it takes to eliminate such threats. Only then freedom, peace and growth can be assured.

What do you think needs to be done?Is there anything else we could add to the list of solutions?Think my fellow Indians!Ponder!

For a better tomorrow,see the big picture

2006-07-05T17:13:00.000+05:30

Friends,
One of the great challenges in any society is increasing administered prices, or reducing subsidies in a politically palatable manner. All democracies wrestle with the problem of reconciling the clash between the short-term political price a government has to pay for temporarily unpopular decisions, and the long-term social good which results from such decisions.

The recent increase in petrol and diesel prices holds a mirror to this classic dilemma. But such a dilemma is not merely the government's problem; the interests of future generations and the whole society are linked to the capacity of a government to take the painful but correct decision. The media, civil society, political parties and opinion makers have the duty to examine these issues and raise the standards of debate.

The oil pool deficit in the current year would have been about Rs. 73,000 crore if prices were not increased to partially offset this deficit. Even then the impact of price increase is only Rs.9,200 crore.

The government also reduced the customs duty from 10 to 7.5% and thus exchequer loses about Rs 6500 crore, reducing the deficit further. The Government is issuing oil bonds to a tune of Rs. 28,000 crore to reduce the oil pool deficit. To that extent, the burden on government increases, except that there is deferred cash outflow. Finally, the oil companies will share a loss of revenue of Rs. 24,000 crore, which in effect is a subsidy to consumers. All these and other steps would bring down the deficit to a manageable level of Rs. 3000 crore. Clearly even with price increase, the government and oil companies are bearing an additional burden of Rs. 52,000 crores, and government is foregoing a revenue of Rs. 6500 crore.

With international crude prices skyrocketing beyond $70 per barrel, any government would have to pass on at least part of the burden to the consumers. Most countries have enhanced oil prices. Britain which imports only 20% of its oil needs, in contrast to our 60%, has priced its petrol at 95 pence per litre (nearly Rs. 82). Most of the nations have realized that global oil prices are likely to further increase as demand continues to grow and supplies stagnate. Over the next few decades we are going to face the severest oil crisis for over a century.

Importing countries have to brace themselves for two consequences of this crisis.

First, oil prices need to be increased, as governments cannot absorb the costs.

Second, the world's dependence on oil needs to be reduced, and consumers and industry should have an incentive to go for energy efficient technologies, more sustainable life-styles and renewable fuels. Otherwise unmanageable fiscal deficits will force governments to bankruptcy; and societies will suffer grievously as oil becomes costlier and more scarce. That is the reason why even rich countries are also raising prices in the interests of society.

One of the criticisms and concerns raised by our economists and parties is the low Tax-GDP ratio in India. Our taxes probably account for 16 - 18% of GDP making it one of the lower shares among large economies. Clearly, better infrastructure, education, healthcare, justice, policing and other public goods cost more money, and low tax base will hurt the poor and inhibit economic growth. If governments give up taxes in order to keep oil prices low, it will only deplete the treasury at the cost of much-needed public goods and services. If other taxes are raised to subsidize oil, it only means that the government is removing the money from the citizen's right pocket and putting it in the left pocket!

Given our low tax-GDP ratio, and the appalling quality of infrastructure and public services, the burden of oil price increase has to be borne by consumers. What we should demand is that every rupee collected is wisely spent by the government for the larger good of our children. Greater transparency, decentralization, accountability, and citizen empowerment must be the watch words.

In fact, the subsidies in energy sector have largely been just dysfunctional and detrimental to the economy. Low price of LPG and kerosene is leading to unauthorized diversion of subsidized LPG and kerosene as automobile fuel. The government is losing an estimated Rs. 15,000 crore per annum in subsidies through diversion. Adulteration with kerosene, which is priced low, is leading to serious environmental pollution and damage to vehicles. Subsidized oil and excise duty concessions on automobiles are promoting private motors leading to more pollution, congestion, higher oil consumption and trade deficits.

But if subsidies have to be given there are two prime candidates.

First is high quality, reliable public transport which will reduce oil consumption, pollution and congestion.

Second, viable alternative, renewable, indigenous fuels like ethanol. This will pave way to the shift to indigenous fuels and reduce green house gas emissions and global warming, rejuvenate agriculture and put our money in our own people's pockets. Even the US is subsidizing ethanol to promote its production. Brazil is saving vast amounts of foreign exchange by producing ethanol at about $ 25 - 30 per barrel.

Sometimes, being wise and compassionate requires toughness. We need to have a comprehensive review of our energy and pricing policies, and delink government from oil pricing decisions. The market should determine the prices, and all subsidies saved should be used for education, healthcare, infrastructure and alternative fuels. We must focus on long-term energy security, renewable biofuels and reduced dependence on costly, imported oil. Politicians have an obligation to look at the bigger picture, speak truth, and mobilize public opinion in favour of rational policies. If today's transient comfort is at the cost of better tomorrows, our children will pay a heavy price for our thoughtless follies.

So,what do you have to say friends?

Where the economy is being chained

2006-06-27T11:59:00.000+05:30

The redoubtable Economist (June 3rd - 9th, 2006), in a special report on Indian business, asks the provocative question: "Can India fly?".

The answer is that it has taken off; but its people could fly much higher without the fetters imposed by poor policies and incompetent government. Most objective observers share this cautious optimism.

The policy issues are mired in politics and populism. But Indian entrepreneurs and workers have a way of boosting production and productivity despite policy errors. The real problem areas are infrastructure, education and healthcare.

Power sector problems are very well-known, but half-hearted attempts by the Union, and populism, incompetence and corruption in states are severely undermining economic growth. When there is will, there are clearly ways of improving the situation.

Witness the much-maligned Gujarat. Three years ago, the losses in power sector were of the order of Rs.2,500 crore. In a bold initiative, the Gujarat government separated the agricultural feeder lines from domestic supply. Farm power is charged at Rs.850 per HP (at 1700 units consumption and 0.50 ps/unit). Today, all villages get 24-hour domestic supply, and the power board is making a tidy profit!

The Union itself is guilty of disjointed policy and incoherent execution in many sectors. Take energy sector. We have several players - ministries of oil and gas, power, coal, mines, non-conventional energy, and nuclear energy, and several public sector behemoths. Each functions as an isolated, vertical silo and there is no integration or convergence. This, at a time when dramatic changes are sweeping energy sector globally, and vital new initiatives need to be coordinated. Health sector provides another example. Nutrition, water supply and sanitation - three key determinants of health - are each managed in splendid isolation. Within health itself, the various disease control programmes, NACO, and AYUSH function as separate empires with very little convergence.

In states, the situation is at times even more alarming. Often key positions are filled routinely, with square pegs occupying round holes. The tenure of key public servants is usually under a year, and in many cases below 6 months! In this merry-go-round, there is neither authority to deliver, nor accountability. Everybody complains against everyone else. A classic system of realistic and plausible alibis is created, in which we have only victims and no villains. Not surprisingly, corruption is rampant.

In general, delivery of services, not withstanding a few notable successes, is poor. Education and healthcare are two important areas of failure. At the policy level, there is welcome recognition of past follies. More attention and money are now allocated to these sectors. In the absence of real reform in delivery, more funds would only lead to more leakages and dissatisfaction.

Do we have to live with this unhappy state of affairs, or can we improve performance? Will our economy be held back by poor governance? The answers lie in our approach to delivery over the next few years. A priceless opportunity beckons us. Indian economy can be truly unleashed and poverty ended if only public money is put to good use and services are delivered properly.

We certainly need comprehensive political reform to change incentives in public life and eliminate corruption. Equally, we need rational, growth-oriented, wealth and employment generating policies. Past orthodoxies need to be given up. But our economy need not be held back until these political and policy failures are addressed. Competent delivery can still be ensured within the political constraints, accelerating growth and reducing the burden of poverty.
There are four broad approaches which can yield significant results in delivery.

First, we need effective convergence of key sectors and services at all levels - Union, state and local. The fact that there are about 70 Groups of Ministers in the Union shows how disparate the functioning of departments and ministries is! Significant restructuring at every level is both necessary and feasible. This better coordination alone will improve both policy making and execution.

Second, a rational personnel policy needs to be evolved and implemented at all levels. Development of domain expertise, selection of the right person for the right job, a guaranteed tenure, clear mandate and adequate resources should be the key elements of personnel management. No elected government can completely ignore compulsions of politics, ideological affinity and personal chemistry. But it is possible to improve performance even within those constraints by sound management. Such management requires parallel recruitment for a tenure, competition, and honourable retirement for those whose strengths do not match the requirements of a growing economy. The barriers between public and private sectors should be lowered, and mobility should be encouraged.

Third, we need fusion of authority with accountability. The bane of our administration is complete divorce between the requirements of a job and the resources at the command of key functionaries. Mistrust, inadequate delegation, over-centralization, excessive procedural rigidities, and low risk-taking capacity are the characteristics of most public servants. As a result, most functionaries tend to take the line of least resistance. Routine files and meetings account for over 90% of the time, and neither innovation nor actual outcomes are pursued with vigour. We need to create a system of clear lines of accountability and clothe functionaries with commensurate authority and provide resources.

Finally, the focus must shift from expenditure and outputs to outcomes. Even physical targets are meaningless except in infrastructure sector, and outcomes need to be monitored in service delivery. For instance, educational attainments, health status, out of-pocket expenditure, economic burden of disease and skill levels can all be measured through random surveys with sufficient granularity to make assessments at district and block levels. We have impressive capabilities in organizations like NSSO, and they need to be strengthened to measure and assess outcomes in key sectors and programmes at grassroots level. Such feedback would be a tool for midcourse corrections as well as monitoring. The additional cost would be marginal, considering the vast outlays now proposed in key sectors of education, healthcare and social security.

Good intentions and the way to hell

2006-06-27T11:57:00.000+05:30

It is said that the way to hell is paved with good intentions. Well- intentioned, but unwise policies can devastate local economics.

The plight of farmers and labourers in Kolleru area of Andhra Pradesh - the low land between Krishna and Godavari deltas - is a striking example of misplaced policies and institutional mistrust causing disproportionate damage to the economy. Three decades ago, there was hunger, malnutrition, disease and distress in Kolleru area. Though located between two great deltas enjoying irrigation over a century, Kolleru area suffered drought and flood alternately. Being at the tail end of both irrigation systems, the farms were dry when there was no rain; and being low lands, they were inundated when it rained. Severe flooding caused devastation in 1964, 1976, 1983, 1986 and 1989.

Since the 1970's the government actively encouraged the farmers take to fish farming: loans were granted, training was imparted, and technology was transferred.

In time, a thriving pisciculture led to rural prosperity. Adversity was converted into opportunity, and the wasted drain water became a source of wealth creation. Now, over 600,000 tons of fish are produced in that area valued at Rs. 2000 crore, supplying food to the rest of India. The sale of fish from Kolleru never exceeded 15,000 tons earlier. In this densely populated area, people's livelihoods, incomes, health, economy, and state revenues - all improved dramatically.

Such high growth led to some aberrations. At times, with the connivance of officials, farmers encroached upon drains, and obstructed flood flow, leading to inundation. Several big farmers and entrepreneurs saw an opportunity in pisciculture, and started taking large tracks on lease, paying annual rental of Rs. 20,000 per acre typically. There are vague complaints of possible ecological impact of pisciculture. All these have practical answers: encroachment should be evicted from drains, and the channels cleared of silt and weed; small farmers should be strengthened, and big farmers should be evicted from government lands traditionally cultivated by local farmers, and now leased out; industrial and municipal pollution in the upper reaches should be stopped; and pisciculture practices should be improved reducing dependence on fertilizers.

Instead of such rational policies, the government, which had earlier actively encouraged pisciculture, now decided to throw the baby with the bath water. Following years of uninformed media campaign, the state, without genuine consultation with the local people, declared an area of 300 sq. km as a wild life reserve, on the pretext that migratory birds including Siberian cranes needed untouched wetland. Fish and birds together actually form a mutually beneficial relationship: bird droppings make natural fish feed; and fish plankton and the resultant ecosystem feed birds. Both growth and nature could be sustained by wise policies. Instead the misplaced policy has the effect of snatching poverty from the jaws of prosperity!

About 35,000 acres of fertile land, including about 10,000 acres of land granted to the local dalits and backward classes is now part of the wildlife reserve. In this area alone, the annual fish production is about Rs. 500 crores. The livelihoods of over 100,000 people in the area are now jeopardized. All this, without any land acquisition or payment of compensation! A fair compensation would be of the order of Rs. 5000 - 7000 crores. All rights of farmers over their own lands are practically extinguished and they are directed to resort to 'traditional fishing', and agriculture without any chemicals. Fish tanks are destroyed in great haste. Drains are left unattended, increasing chances of inundation in upper reaches. Pollution from industry and municipalities is not stopped. But agriculture and pisciculture are blamed for ecological damage.

If agriculture is unacceptable on grounds of pollution, there is farming and pisciculture in 12,00,000 acres in the upper reaches, and the waste water drains into Kolleru. It is absurd to think of curtailing agriculture in this rich rice and fish bowl with over 3 million population! And if such 'pollution' is harmful, then the wild life reserve in the lower reaches has no meaning. State's folly is now compounded by institutional mistrust and logjam.

Under the law, the State government can declare an area as a wild life reserve. Once such notification is issued, all authority vests in the Union, and the State cannot correct its follies. Even the Union executive has no real power, as the wild life board and its standing committee take over. Even they cannot correct the mistakes, as the Supreme Court decided that all proposals for changes even if approved by the State, Union and the wild life board, should be cleared by it. The Court itself created sixteen empowered committees with extraordinary executive powers.

In the Kolleru case, a few well-meaning activists went to court, and obtained orders for demolition of fish tanks even before land is acquired. Neither compensation for lands, nor a comprehensive package of rehabilitation entered the picture. Agriculture is now criminalized, as par with smuggling or counterfeit currency. Now, even as politicians slowly recognize their folly, they are helpless to correct the mistakes. A system of alibis is created with everyone claiming helplessness. When the region is finally devasted economically without commensurate benefits to society, no one can be held accountable.

This is a classic case of chopping off the head for a simple headache. Can we disentangle the mess we created and promote rational policies and sustainable growth? It will take years of dedicated efforts, wisdom and restraint from all players before some sanity is restored to our polity. Meanwhile, will somebody, anybody the State, Union, the Courts - understand the pain, anguish and needless suffering inflicted on the helpless population of Kolleru and protect their rights and livelihoods? Or will we add to the growing rural alienation, unrest, and resort to violence, which have bedeviled our skewed growth?

The risks and rewards of corruption

2006-06-27T11:55:00.000+05:30

The recent CBI raids and allegations of disproportionate assets of a prominent Haryana politician to a tune of Rs. 1500 crore have barely evoked any interest among political pundits and media. There is such cynicism prevailing about politicians, that most people tend to believe the worst about 'them'.

But we have to acknowledge that corruption is all-pervasive in our society. The much-talked about corruption perception index of Transparency International places India pretty low in terms of integrity in public office. A CMS-TI study in 2005 estimated that the monetary value of petty corruption in 10 sectors alone is of the order of Rs. 21,000 crores per annum. When you consider the collusive or 'grand' corruption and all the sectors of the economy, easily ten times this amount is collected in bribes annually. The 3 million trucks in road transport industry provide an illustration.

Typically, each truck pays about Rs. 200 per day as bribes at check posts, octroi centres, and other places. Thus, petty corruption in truck transport alone accounts for over Rs 20,000 crores per annum! Clearly, corruption amount of Rs 200,000 crore every year is a realistic estimate by any standard.

The disclosure of assets of candidates which came into effect in 2002 with Supreme Court intervention has created some unusual situations. Many politicians known to be wealthy, but corrupt disclose very little income or assets, whereas honest politicians with legitimate income disclose much more. The net result is, disclosure of assets has become somewhat ludicrous, and often distorted. There are still many honest politicians and public servants. It would be extremely debilitating to our democracy to paint all public servants - elected or appointed - by the same brush.

Huge, unaccounted and illegitimate election expenditure, mostly incurred by the candidates as an investment in politics as business, demands multiple returns to sustain it. Even a casual analysis shows the multiplier effect of illegitimate election expenditure on corruption: risk premium is high in politics; provisioning for the next election has to be substantially higher than the previous one; a high return on risky investment is the natural expectation; the many party 'cadres', who in mass-based parties are actually mercenaries, need to be rewarded with access to public money and opportunities to make a 'living' at cost of state or society; and the many intermediaries in the vast cycle of corruption demand their own pound of flesh, thus multiplying the corruption proceeds several fold. Direct theft of public money through treasury malpractices is both rare and easy to detect and punish. In a robust and open democracy, complex systems need to be evolved to sustain such a web of corruption. Transfers and postings of officials and even junior employees often has a price. At times some form of auctioning actually take place, and the positions go to the highest bidders. The bids can be one-time payment for a tenure, or monthly payment of a guaranteed amount.

The expensive private political advertisements in language papers and bill boards extolling the virtues of this municipal chairman or that MLA, not to speak of state party basses and chief ministers is an indication of the huge expenditure which goes into politics as investment in anticipation of multiple returns. Such large expenditure by political wannabes for self-aggrandizement or pleasing political godfathers significantly adds to the corruption load on the system.

This tragic vicious cycle of corruption is undermining competition, jeopardizing vital services, diminishing quality of lives, distorting public life, and impeding economic growth. Bhanoji Rao and Srinivas Kolluru estimate that our growth rate will increase by about 1.65% at current investment levels if our integrity reaches Singapore levels. Competition and choice in the economy have successfully curbed corruption; telephones is a good example. Transparency and technology have been effective in reducing supply. But technology succeeds only when processes are reengineered. Land records computerization in AP did not reduce corruption in land registration; but in Maharashtra there was greater success. Recently issuing driving license and renewal has become largely corruption-free, thanks to sensible process reengineering coupled with application of IT.

But there are core areas which cannot be taken out of state control. Already justice system is 'privatized' by armed gangs taking law into their hands, and providing rough and ready 'justice' for a price through brutal means. In fact, this state failure has vastly complicated our politics and inducted murderers into legislatures. Therefore, the standard libertarian mantra of 'privatization' does not address the problem adequately. It only tends to shift corruption from the economic areas of decision making to the core areas of state functioning. Therefore, while efforts should continue to curb the supply of bribes, we need to look hard at the demand side.

One simple solution is to make it much harder for corrupt public servants to enjoy the fruits of their perfidy. For instance, the Law Commission, in its 166th report (1999) recommended confiscation of properties of corrupt public servants. Jammu and Kashmir recently enacted such a legislation. Such a law effectively enforced along with strict curbs on benami transactions (as advocated by Law Commission in its 57th report in 1973) will reduce the rewards of corruption drastically, and increase the risks hugely. This is a relatively simple and easy measure which should find broad acceptance across the political spectrum.

A lot more needs to be done to transform the political culture and to change the electoral system in order to make it possible for honest men and women assume public office without illegitimate expenditure. But the first sensible step is to make the corrupt pay.

Crossing the Rubicon...Tamil Nadu style

2006-06-27T11:21:00.000+05:30

In a democracy, elections are not merely about choosing representatives and deciding which party should be entrusted with the responsibility for governance. Elections are also about political education and determining priorities for the future. But over the decades, most parties in India have failed to utilize elections as a means of mobilizing public opinion to obtain a mandate for meaningful change. Instead, elections have become a way of determining who will rule.

Over the years, cynical and shameless manipulation of the poor and powerless voters through competitive populism has become the dominant feature of our elections. The current Tamil Nadu Assembly election has shown that this process of manipulating the vote has reached the nadir. The DMK-combine promised colour televisions to each family!

This is by no means the first time when a party offered freebies to the unsuspecting and hapless poor. Most candidates habitually offer money and liquor for vote. And since the early 1970's politicians perfected the art of using public money as inducement for vote. Ostensibly, all these promises are intended to eliminate poverty. But the gullible poor remain as vote-banks, and no significant dent is made in poverty.

The Garibi Hatao politics of 1970's and the populist policies of NTR and MGR are good illustrations of the poor becoming an assured vote bank, even as their condition remains largely unaltered. The absurd campaign of Devilal in Haryana in 1987 marked a new low, when he promised to give irrigation water without 'depleting the power in it' as opposed to Congress which generated hydro-electricity before allowing it to flow into irrigation canals! Devilal again hit headlines in 1989 by promising to write off farm loans. The loan waiver was eventually implemented by VP Singh government in 1990. The credit system suffered irreparable damage, and farmers continued to be in distress after the loan waiver.

Politics of free electricity has dominated our electoral landscape for long. Several states resorted to this, including the present Congress government in Andhra Pradesh. Farmers continue to pay huge bribes for new connections or services, power supply is erratic, and utilities suffer serious losses at great cost to the tax payer. And yet, the cynical governments resorting to such short-term ploys reap rich political dividends.

But all these pale into insignificance in the face of the brazen promise of DMK in Tamil Nadu to give colour televisions. By this reckless promise, the sovereign voters are converted into mendicants. The tragic death of several poor women while distributing free sarees in Lucknow in 2004 forever reminds us how the voter has been reduced to a beggar. But Mr Karunanidhi now seeks to institutionalize such mendicancy. In such political calculations, people are not human beings with dreams and aspirations, and dignity and pride. They are reduced to being voters whose compliance is necessary for the power of a few manipulators.

When poll promises are always made with an eye on the votes, what is wrong with Mr Karunanidhi's promise? Because, this time by offering colour TV sets, the politicians have crossed the rubicon. Most of the subsidies and freebies offered by parties so far can be justified on the ground that they were meant to help fulfil potential, or prevent suffering, or support the weak and vulnerable. But colour television sets cannot be justified on such grounds by any stretch of imagination. That is why Mr Karunanidhi's election promise has implications beyond Tamil Nadu and this election.

If such a reckless electoral tactic goes unpunished or unchallenged, who knows what tomorrow will bring? In a future election, a party may offer free motorcycles, another will promise refrigerators to all, and a third will give motor cars! And why not guarantee a hundred bottles of free liquor annually to every family? And all this, with public money. This will certainly bankrupt the treasury. Election will go to the highest bidder. Once such promises are honoured, nothing much more can be done. Education may be in perilous state denying poor children an opportunity to enlarge their horizon and acquire skills; we may have more televisions than toilets, and people may suffer indignity, humiliation, inconvenience and ill health on account of public defecation; and public health may be in shamble forcing millions into sickness and debt trap. But once people get televisions and scooters, the state does not have resources to do the things which it ought to do.

Therein lies the real tragedy. The state is ready and willing to do what it need not, or ought not to do, at the cost of its essential functions. Poverty is perpetuated, and millions remain as vote banks, seeking alms and freebies which will never improve their condition. The netas and their families of course continue to thrive in the 'service' of the people. The servant becomes the master, lording over people, and the sovereign citizens become mendicants propping up the political fortunes of a few individuals and their kith and kin.

This must stop. If the parties have any sense of shame and spirit of public service left in them, they must come together to put an end to this culture of mendicancy. The media, which are busy peddling the week's sensation, must rise above the mundaneness of daily occurrences, and mobilize public opinion to reshape politics. The time is now, before all parties subvert our democracy fully and public office becomes the preserve of the highest bidder.

Can Merit and Social justice be compatible?

2006-05-01T15:38:00.000+05:30

Dear friends,
The recent debate generated by the proposal to reserve 27% seats in Union educational institutions for backward classes has predictably been very shrill and hysterical. Reservation is a classic zero-sum-game issue and polarizes society intensely, as the gains to a social group are matched by losses to another. Prejudice and bitterness in this debate must be overcome by facts and logic. We all need to step back a little and take a deep breath.

There are three critical issues we need to examine before reaching any conclusions.

First, even today the future of a child can be predicted fairly accurately at birth based on caste, family and gender in most cases. Such a predictable future determined by the accident of birth and unrelated to abilities and hard work is an unacceptable disgrace in modern civilization. Poor children from deprived sections are as brainy and sharp as others, and yet they seldom fulfill their potential, as opportunities for vertical mobility are denied.
As a result, much of the gene pool of our society is wasted. Sustained high growth can be preserved only if we include all social groups in a modern, humane vision of an egalitarian society where all sections are winners. There is a clear and compelling case for strong affirmative action policies to promote equity and opportunity and preserve peace and harmony. Otherwise, violence will become arbiter of social justice. Equity and social harmony cannot be delinked.

Second, our quest for social justice and opportunities for all must be combined with the search for excellence. Clearly, in a modern society competence and performance are critical for economic growth, service delivery and governance. We need to devise means of affirmative action which ensure high standards of performance.

Third, thousands of youngsters would never have found dignity and opportunity without affirmative action policies. While there are obvious distortions, the fact remains that reservations benefited large sections, and many of them performed creditably once opportunities are provided. Equally, the benefits of reservation are uneven, with families which prospered early through preferential treatment enjoying a huge lead over the poorer, uneducated families.

Given the complexity of the issue and the unevenness of outcomes leading to distortions, there is resentment on both sides. The poorer SCs, STs and OBCs feel cheated by politics of tokenism and lack of access to education and employment. The other sections, particularly the poorer among them, feel discriminated and resent diminishing opportunities relative to demand. Given the enormous hunger for quality education, the availability of seats in institutions of excellence and the perceived fairness of selection are hugely contentious issues.

What do you think?Can we promote equity with efficiency? Can 'merit' and 'social justice' be made compatible? Can preferential policies be taken out of the prison of zero-sum-game through win-win solutions?

Happily, rational solutions are available to these dilemmas. Policy makers and media need to focus on them, instead of indulging in feverish invective and hype. Political expediency, social ostracism and rage must give way to rationality, wisdom and long-term solutions. What, then, can be done?

First, preferential policies must be coupled with incentives for performance, particularly in professional courses and in institutions of excellence. This can be done by giving a head start to candidates from disadvantaged groups. For instance, if 90% is the cut off score for general candidates, preferential groups can be admitted at, say 80% or 75%. This provides motivation and incentive to reach a benchmark, and guarantees uniformly high standards. The preferential candidates must be given free, intensive coaching during plus two course to meet these standards.

Second, a 'Means Test' must be adopted for preferential treatment. Among disadvantaged groups, reservations can be primarily for families with low income, and those below a certain grade in government or profession. And among other sections, poor candidates can be guaranteed free tuition, and no student will be denied higher education for want of money. A system of scholarships, endowments and soft loans can be institutionalized.

Third, there is a case for rationalizing the reservations for BCs. Mandal Commission report is over 25 years old, and periodic surveys and reclassification are needed for determining groups deserving preferential treatment and identifying the most backward classes (occupational groups) for special privileges.

Fourth, there is need for deregulation and expansion of higher education to suit the needs of a growing, large economy. Accreditation, academic freedom, rating and transparency instead of licensing and regulation will expand opportunities vastly. In addition, state institutions must significantly expand capacity to meet the demand for quality higher education.

Finally, school education and healthcare must be the corner stones of governance. Tony Blair staked his government's reputation and survival on the quality of education; George Bush was elected in 2000 on the basis of his record in school education as Texas Governor. In India, public policy, political discourse and governance are largely divorced from education. Education engages the attention of politicians and media only when reservations become an issue. The appalling failure of the state in the social sector is at the heart of the persisting inequities.

But those who argue that good school education is a substitute for preferential treatment must recognize that the poor and disadvantaged cannot be held guilty for monumental governance failure. Neglected groups are hungry for good education and opportunities. Even poor rural Dalits are spending Rs.200 per month per child in the hope of 'convent' education. The nation needs preferential policies and good school education. Meanwhile, we can design programmes to combine equity with efficiency.We can create a win-win situation!

Questions :
1.According to you,what is the best way to make Merit and Social Justice compatible?

Your opinion and ideas will help fuel a very necessary debate on this contentious issue.I look forward to hearing from you!

Energy Security – Time for Plan B?

2006-03-27T10:54:00.000+05:30

The recent foreign policy debates are largely centered around our future energy needs. Frenetic economic diplomacy to secure nuclear power generation oil and gas contracts, and laying pipelines on the east as well as west to transport fossil fuels are certainly of value in the short and medium term. Long-term supply contracts and investments in exploration in oil-rich countries will give us some leverage. But we need to plan for the future with clarity in an integrated manner.

Let us look at the bigger picture to understand the threats to our energy security. A recent book – “Plan B 2.0” by Lester Brown – paints a grim picture of the global situation in the next hundred years. Brown is not an evangelist with apocalyptic vision. He is an optimist who recognizes the many opportunities to shape a better and more secure future in the next century.

Brown points out that we are very close to peak oil production, and, “indeed, when historians write about this period in history, they may well distinguish between before peak oil (BPO) and after peak oil (APO)”. He analyses oil prospects in three different ways. First, anticipate future production trends using the reserves/production relationship, a method pioneered by King Hubbert. This analysis suggests that nearly 95% of all the oil in the world has already been discovered. Major global companies – Shell, Chevran Texaco, Conoco-Phillips – reported that their 2004 production greatly exceeded new discoveries. Geologist Walter Youngquist notes that in 2004 the world produced 30.5 billion barrels of oil, but discovered only 7.5 billion barrels of new oil.

The second approach separates the world’s principal oil-producing countries into two groups – those where production is falling and those where it is still rising. Of the 23 leading oil producers, output appears to have peaked in 15, and is still rising in eight. The post-peak countries include the US, Venezuela, UK and Norway. US oil production declined by 44% since 1970, from 9.6 mbd to 5.4 mbd, and Venezuela’s production declined by 30%. The eight pre-peak countries are Saudi Arabia, Russia, Canada, Kazakhstan, Alegeria, Angola, China and Mexico. Sadad al-Husseini notes that annual world oil demand is rising by 2 mbd. In addition, the annual decline in production in existing fields is 4.4 mbd. In other worlds, new production must increase by 6.4 mbd every year. This is virtually impossible. While new finds are declining, there is vast amount of oil is stored in tar sands in Canada and oil shales in Venezuela. Only a quarter of it can be recovered, but at great environmental cost.

The third approach is to examine the actions of major oil companies themselves. Leading oil companies are investing heavily in buying up their own stocks. Mobil ($ 10 b) and Chevran Taxaco ($2.5b) spent vast amounts to buy back stock. As Brown says, “With little new oil to be discovered and world oil demand growing fast, companies appear to be realizing that their reserves will become even more valuable in the future”. Also, there is no substantial increase in exploration and development even after oil prices shot beyond $ 50 a barrel.

All these approaches lead to one inescapable conclusion. We must plan for after peak oil (APO). For India, there are five options. First, nuclear fuel, with all the caveats and limitations, offers significant opportunity for power generation. Our current 3% can, and should be enhanced to about 15-20% in the next decade. Second, we have significant coal reserves. But our coal is of poor quality (calorific value averaging 2500 Cal per kg), and is highly polluting with vast ash content (often exceeding 40%). On top of it, our nationalized coal companies have become dens of corruption and incompetence. In most coal belts, a vast network of mafia operates, and a whole new political economy grew around mining. Dhanbad coal mafia is a classic example, but it represents only the tip of the iceberg. Coal mining needs to be opened up to competition and private investment, and ruthless action is needed to eliminate mafia links and criminal influence.

Third, we need to harness all renewable sources of wind, tidal energy and solar power. These forms of power are self-limiting, and can at best be tapped in small quantities at community level, and will work best in conjunction with centralized power grid.

The fourth is generation of biofuels utilizing our vast agricultural land, which at 140 mha accounts for 12% global farm land. In a fundamental sense, agriculture should meet most future energy needs, and supply fungible, easy-to-use biofuels. This will put pressure on food supplies. Plentiful, cheap oil distorted world economy over the past 50 years. In 1970, 1.49 bushels of wheat could buy 1.79 barrels of oil. Since then, this ratio increased from 1 to 13, meaning that now we need to sell 13 bushels of wheat to buy one barrel of oil. As food and fuel compete for land, the need for biofuel production will raise food prices. That may actually be good news for a country like India, where 55% of the people living on agriculture enjoy only 21% of GDP. But massive investments, R & D, and planning are required to tap our vast potential. Finally, India needs to look at demand side management. Increased energy efficiency, better public transport, and imaginative urban planning are vital to reduce demand.

Clearly, integrated energy management is the key to our energy security. Segmented approach – coal, power, oil and gas, non-conventional energy, agriculture – can no longer yield dividend. Will the government act on Plan B quickly?

Growing Agrarian Crisis

2006-03-05T17:39:00.000+05:30

As the Finance Minister gets ready to present the budget for next year, the sector which causes him the greatest anxiety must be agriculture. The past year has been relatively good in terms of rain fall and the Rabi yields should be encouraging. But in general, for over a decade now agricultural growth has been sluggish, stuck at about 2%. And there are four good reasons to be concerned about low agricultural growth rates.

First, sustained high GDP growth rates demand doubling of agricultural growth from 2% to 4% per annum. Second, unless agriculture yields better incomes for the rural population, domestic demand for manufactured goods and services is bound to taper off, adversely affecting growth in secondary and tertiary sectors. Third, the share of agriculture in our GDP is rapidly declining. Agriculture accounted for 31.3% of GDP in 1991-92 but by 2003-04 this share fell to 22.1%. This relative decline is leading to misery and a sense of deprivation in rural India. Finally, nearly 60 percent of population still depends on agriculture directly or indirectly, and jobs in non-farm sector are not created on the required scale to absorb the agricultural workers and new entrants to labour pool.

If these challenges are not addressed swiftly and aggressively, there could be serious social strife and political volatility. Already the evidence of rural distress is mounting, with endless news of hunger, farmer suicides and large scale migration to urban areas in search of livelihood. The spread of left wing extremism across large tracts of the country over the past decade is one more manifestation of growing despair and anger in rural India. The numbers are revealing. The income per capita of over 55 percent of Indians dependent on agriculture is only 23% of the rest of the population. Such deprivation of the vast majority of people in a poor country has debilitating consequences to our economy and polity.

What can the FM do to stimulate agriculture and rural economy? Protection from cheap imports is certainly necessary. But in an increasingly globalized world our consumers will not accept higher prices of edible oil and pulses when cheaper imports are possible. Cotton farmers can be given added protection by higher tariffs. The past few years have seen over 100 lakh bales of cotton import, which exceeds the preceding 30 years’ cumulative imports! But with the end of the WTO quota regime, India must aggressively expand its market share in garment sector. Therefore, cotton prices cannot be allowed to rise beyond a point, if our garments are to be globally competitive.

A lot of needless subsidies have only sucked up precious resources (urea) or led to growing corruption without benefiting the farmer or consumer (food subsidies and cotton procurement). Most of these subsidies can be rationalized or ended, and those resources can be channelized into capital in agriculture sector to boost productivity. Credit expansion is already a stated policy goal, but it yielded mixed results. Excessive state control of credit cooperatives, extortion of predatory public officials, poor land records, weak credit infrastructure, and sluggish demand for agricultural products limit the credit expansion. The state extension machinery is virtually dysfunctional, and the corruption and incompetence of public agencies is resulting in short supply of seeds and sale of substandard inputs. Effective institutional mechanisms must be evolved to address all these issues – subsidies, credit, extention and inputs.

In addition, focus on three areas is critical for the future of agriculture. First, agricultural markets need to be reformed and opened up. Regulated markets enjoy a monopoly, and corruption and incompetetence are rampant. While the mandis function tolerably well in same states, in other states they are a source of political patronage and corruption. In case of vegetables, fruits and fish, the farmers are entirely at the mercy of local mafias and extortionary middle-men. Years ago, when Andhra fish farmers wanted to enter Kolkata markets, they had to submit to extortionary demands of local mafia. Only timely intervention of the then chief minister Mr Jyoti Basu helped both the farmers and the consumers. Agricultural marketing is a state subject and strong incentives are needed to nudge states to quickly reform the markets.

Second, value addition to agricultural produce is the key to the future. Tomatos sold at Rs 16 per kg a month ago in Andhra Pradesh, and they now sell at Re 1 a kg! The story on onion price fluctuations is too well known to bear repetition. These price fluctuations in case of perishable commodities is very common. While a few lucky farmers may benefit from high prices, most are driven to despair, and often the low price does not cover even the costs of harvesting. Agro processing on a massive scale will stabilize process, add value, raise incomes, assure markets, boost local economy, and create new jobs. Budgetary support for infrastructure and investment, and policy support to boost agro-processing are vital to revive agriculture.

Third, millions of rural youth are both unemployed and unemployable. Declining agriculture cannot give them livelihood, and industry cannot absorb them. A massive programme to promote skills and boost investment in small and medium enterprises in rural areas is essential for job creation.

For years, budget pronouncements have been long a rhetoric and short on action when dealing with agricultural revival. Will the 2006-07 budget be different?

One Step Forward, Two Steps Backward!

2006-02-16T12:31:00.000+05:30

One of the disquieting features of Indian politics and public policy is the colossal damage done to the rural and agricultural sector by successive governments, all in the name of the people. If the explicit objective is to undermine the rural agriculture-dependent population, our governments could not have done a more thorough and effective job!

For decades the babus and politicians did their best to undermine agriculture. In the late 50’s and 60’s, collective farming was the fashionable goal. Congress party even attempted to emulate the soviet model, and only timely intervention from sane voices saved the day. In an insane moment in the 1970’s, even trading in food grains was sought to be nationalized, and orders have been issued! Mercifully, the scheme soon collapsed because of rampant corruption and incompetence of government.

Public policies have always tended to hurt farmers and producers. Compulsory procurement of food grains at below-market rates, phenomenal corruption and inefficiency, unfavourable terms of trade, restrictions on trading movement and storage of farm produce, all undermined agriculture. Rural credit institutions are extremely weak, and most farmers are forced to borrow from usurious money lenders. Fair markets in general do not exist, with the exception of the Mandis of Punjab and Haryana (thanks to the foresight of Choutu Ram), and marketing committees in most states are sources of political patronage and corruption. The scams in cotton procurement are a good illustration of government bungling.

The saddest part of the story is the unconstitutional, vice-like grip of politicians and bureaucrats over farmers’ cooperatives. The story of the dairy cooperatives in Andhra Pradesh is a good illustration of corruption, incompetence, malice and gross perversion of the Constitution perpetuating rural poverty.

The Constitution clearly guarantees the fundamental right of citizens to form and run cooperatives [19(1)(c)] and to carry on any trade or business [19(1)(g)]. The state has ignored this constitutional liberty for decades, and controlled the cooperatives in a most brazen and arbitrary manner. In time, corruption and incompetence of government bureaucrats led to collapse of most cooperatives, forcing some rethinking. The Brahma Prakash Committee (1990), the model cooperative law (1991), the Vaidyanathan Committees (2005) and several other expert reports emphasized the need for autonomous, democratic and professional management of cooperatives free from government control. The UPA government’s NCMP reiterates such commitment.

In 1995, AP was the first state to enact the Mutually Aided Cooperative Societies Act (MACS Act), recognizing the constitutional liberty of cooperatives in respect of societies which do not have government share capital and do not seek government assistance. Out of the eleven district cooperative milk unions, 8 district unions and about 5000 primary milk societies chose to be registered under MACS Act. The results over the past few years have been stunning.

The dairy cooperatives under MACS Act more than doubled their turnover in five years, and profits and net worth soared. The farmers get the highest price (Rs.195-225 per kg of fat), and profits are shared by members as price difference and bonus. The cooperatives provide other free services – artificial insemination, feed, veterinary care, and medical facilities for the families. In contrast, the dairy cooperatives which remained under government control collapsed, losses mounted, and are under liquidation. Farmers are forced to sell milk to private companies which formed cartels and offered less price (Rs.175 per kg fat). The government-controlled dairy federation is a white elephant with large, over-paid, inefficient staff and endless corruption. The federation offers even less price than the private companies and both provide no other services to farmers.

Given this backdrop, the AP government took an extraordinary decision this month. By an ordinance, all the successful, well-functioning dairy cooperatives under MACS Act were brought under the repressive 1964 Act, all elected managements were dismissed in the dead of night, and bureaucrats took over all the 5000 cooperatives at primary and district levels. The reasons cited by the state are laughable if the consequences are not tragic! The government, under whose control and watch all district unions collapsed, claims that the law is to improve the financial performance of diary cooperatives and serve farmers! With ‘friends’ such as these, farmers need no enemies! In the face of the Constitutional guarantees, proclaimed public policies, and compelling and incontrovertible evidence of financial collapse under government control, it is shocking that states still keep playing these political games for control and corruption in this day and age! Farmers end up losing heavily, and this loss often marks the difference between life and death in times of distress.

On issues like this, the hapless farmers will eventually win the legal battle, thanks to independent judiciary and a written Constitution. But even then, enormous struggle has to be waged not to improve formers’ conditions, but simply to stay where they were! This is a classic case of one step forward, two steps backward!

The states’ actions in agriculture, cooperatives, education, healthcare and local governments are going to determine the economic future of rural India and urban poor. Governance in states, rural incomes, constitutional liberties, and citizen-centric administration are inextricably linked. And yet, even in states which are ruled by major parties with a powerful stake in the Union government, vindictiveness, unconstitutionalism, adhocism and an attitude of ‘might is right’ seem to prevail. The right hand does not know what the left hand does! Clearly our economic future increasingly depends on altering political incentives and reforming governance.

Outcomes in School Education – Testing Boards

2006-02-03T23:39:00.000+05:30

The Compiling and release of the Annual Status of Education Report (ASER), 2005 is a landmark event in the evolution of school education in India. Pratham, a reputed civil society organization conducted a nation-wide survey of school-going children in 485 rural districts. 776 small and big groups along with about 10,000 volunteers participated in this massive exercise, and assessed the elementary education outcomes on a large, randomly selected sample of nearly 400,000 children in 9521 villages.

The findings of ASER are revealing, and give us valuable insights into the state of our elementary education. While the information pertains to school children in the 6-14 years age group, it also helps us understand the state of secondary education by revealing the state of the foundation in early schooling. Even more significant, the quality of teachers and their commitment and accountability can be inferred from the quality of outcomes in schools.

The results of ASER-2005 are mixed. There is happy evidence of increased allocations to, and emphasis on, school education through various programmes like Sarva Siksha Abhiyan and Mid-day Meals improving enrollment and retention in schools. 93.4 percent of all children (6-14 years) are at school. There are of course, inter-state variations. But the overall situation has improved. 75.1% of all children are in government schools, and 16.4% are in private schools. About 3% are in madarassas and alternate schools, leaving 6.6%, or 11 million children, out of school. More than half of those out of school were never enrolled.

But the learning levels of the children in schools reveal a far more distressing picture. 34.9% of all school-going children in 7-14 year age group cannot read even a short, easy paragraph (level 1; Std 1 level difficulty), and 51.9% cannot read a simple story (level 2; Std 2 level difficulty). Even in the 11-14 year group, 31% children cannot read the level-2 passage. While private schools fare better than government schools, the difference in outcomes is not high. While over 65 percent of children (Std II-V) in government schools cannot read a level-2 passage, over 52 percent of children in private schools too cannot read! Clearly, the problem transcends the usual analysis of public sector vs private sector debate.

Performance in Arithmetic tasks is equally distressing. Over 41% of children (7-14 years) cannot do a simple two-digit subtraction; over 65% of children cannot divide a three-digit number. Even among the children in 6th and 7th standards, 40% in government schools and over 33% in private schools cannot do a simple division. For a country which prides in its technical manpower pool, proficiency in mathematics and ability to provide back-office services to the world, this is an alarming situation.

Clearly, the children who are either genetically better-endowed, or are fortunate in being born to educated parents or having caring, competent teachers do very well, and are able to find jobs demanding high productivity. Some of them successfully compete with the best in the world, and bring laurels to India and make us proud. While the best products of our education are a match for the best in the world, the average is appallingly low. That is why, nearly 80% of our gene pool is untapped and the productive potential of the bulk of people is wasted. The results are low productivity, poor skills, and massive unemployment even after several years of schooling, or even college education.

The ASER – 2005 also dispels some other myths. The states traditionally regarded as better-governed are doing as badly as others, or in some respects even worse!

But there is hope. Our society values learning, and parents are willing to pay any price for giving their children a head start. ASER shows that the debate on education is now moving a few notches up, and is focusing on outcomes. A few practical steps can dramatically improve school education.

First, at the very minimum, we need State Testing Boards and a National Testing Board to regularly monitor education outcomes and provide invaluable data.

It is axiomatic in education that what is important is what gets tested! These Testing Boards could adapt the best practices elsewhere to suit our conditions. Standardized assessments practices in the US, France, Germany, Sweden, England, New Zealand, Scotland and Japan offer as excellent models. Our own NCERT has developed both the “National Curriculum Framework”, and “Minimum Levels of Learning”, both of which can form the basis for evolving sensible criterion-referenced assessments across the country. The current examination system is extremely flawed. Pressure on teachers to improve pass percentages often leads to rampant mass-copying. I remember a Chief Minister extolling the virtues of his minister for enhancing the X Std. pass percentage from 26 to 94 in six months, little realizing that these inflated numbers only demonstrate the ingenuity of teachers under pressure, not better outcomes! Testing Boards can first take up random sampling tests and identify the weaknesses in outcomes and facilitate strategic interventions for remedial action. Such a low cost initiative will build pressure on the system to deliver, and sensilize parents and community. Stake-holder empowerment through School Boards, and nation-wide standard tests for university admission can follow.

ASER 2005 has provided an invaluable tool to improve school education. There is nothing more important for enhancing our productivity and giving opportunity to poor children. Will the government act?

Crisis in Education

2006-01-16T17:25:00.000+05:30

In the debate on employment guarantee in recent months, the real issues of skill promotion, empowerment and education were largely relegated to the background. We need to recognize that the well-intentioned employment guarantee is at best a short-term palliative to help combat the pangs of hunger and starvation of the desperately poor. But these palliatives mask a harsher reality. The state has spectacularly failed in skill promotion to make our people fulfil even a part of their potential. A vast majority of Indians have not been given a decent chance to be productive partners in a modern economy. In this day and age, it is absurd to think in terms of unskilled manual labour providing productive employment to the bulk of the people. While a small part of India is forging ahead with visions and dreams of 21st century technology and prosperity, the rest of the nation is relegated to perpetual penury and driven to despair.

The Indian state stubbornly failed to address the issue of education over the past six decades. Even in primary education, which is now recognized as a fundamental right, we continue to focus only on enrollment and retention of children in schools. There is hardly any effort to provide quality education which guarantees at least minimal levels of learning after a few years of schooling – fluent reading, ability to write, and simple arithmetic. Even these basic tools of literacy are unavailable to the majority of products of primary education in India, let alone the capacity to logically analyse issues and apply knowledge to real life problems.

When primary education suffers such neglect and the goals set are so unambitious (mere enrollment and retention), it is no surprise that secondary education has been all but ignored in our scheme of things. Only now there are some very feeble, belated signs of recognition that we cannot be a nation of primary school graduates, if we are to compete in modern world. An equivalent of Sarva Siksha Abhiyan is now being considered for secondary education. Even here, the emphasis is on building minimal school infrastructure (building class rooms) and hiring school teachers, and not on ensuring outcomes in terms of quality of education and preparing school graduates for productive and skilled work in modern economy, or for university education.

The appalling state of our school education is a surprise to many well-educated, highly skilled Indians. There was a time when our state schools, though few in number, were helping the youngsters who could access them realize their potential. That is how a whole generation benefited in the quarter century after freedom. But as the state’s attention shifted to short-term populism and a doles culture, real nation-building and basic services suffered. Education and healthcare along with public order, justice, basic infrastructure and natural resource development were the inevitable casualties. This failure of state, coupled with the attraction of English as medium of instruction, led to the flight of middle classes to private education. Much of this private education is of indifferent quality, and often incompetent teachers taught ignorant kids in a language they did not understand. Despite this, many parents feel empowered because their patronage sustains the school, and there is some degree of accountability.

The more enlightened parents ensured better education to their children either by spending more, or by working hard to give their kids a head start. It is no accident that the bright products of technology often are children of school teachers themselves. But in most private schools, the quality of education is as appalling as in state schools. The poor domestic workers and rikshaw pullers who are willing to sacrifice a great deal to pay tuition for their children are getting a raw deal most of the time. Simultaneously, as the middle classes avoided state schools, there is no pressure to improve quality of education. Even teachers rarely send their children to state schools where they teach! Stakeholders of state schools have generally no voice or knowledge, and those with voice and power have no stakes in schools. A vicious cycle has thus set in.

This crisis is further compounded by the failure of higher education. The few IITS and IIMS often mask the abject failure of our universities. In terms of numbers, our output is impressive: 330 university-level institutions, 16,000 colleges, 10 million students, 350,000 teachers, 25 million graduates and post graduates in liberal arts, and finally our USP – 6 million scientists, engineers, physicians and technologists. But the real tragedy is most graduates lack basic knowledge and skills. There was a time when many public-spirited Indians and intellectuals used to argue that the state should focus on school education, and higher education is not a priority. Increasingly, the synergies between school and university education are evident. We now do not have university graduates of reasonable quality to supply good school teachers. And schooling is so inadequate that most university students lack the basic skills and knowledge needed to benefit from higher education. The vicious cycle is complete.

There is a silver lining in this extremely distressing scenario. Our kids are ambitious and hard-working; parents are willing to sacrifice a great deal for education; society values learning; we have a civilizational ethos of scholarship, and there is at least the basic educational infrastructure. A few simple, practical innovations can dramatically transform this bleak scenario. But our politics and public discourse should learn one simple mantra first: education, education, education.

Wrong Diagnosis; Inadequate Treatment

2006-01-02T09:07:00.000+05:30

The recent sting operations exposing sleaze of MPs certainly stirred the nation. These exposés pose a formidable challenge to the legitimacy of our political system. But the Government’s frenetic efforts to provide state funding for elections, is a classic prescription of placebos for a deep-rooted political malaise. Public funding in itself, like placebos or vitamins, is harmless, even desirable. But this knee-jerk response does not address the underlying crisis. Two issues need elaboration.

First, already there is significant indirect public funding available to parties in India. The Election and other Related Laws Amendment Act, 2003 was a remarkable piece of legislation accomplished by the good sense of the then NDA government and the opposition Congress. In the wake of the Tehelka episode, Congress party constituted a committee headed by Dr Manmohan Singh, and its report was accepted by the then government, resulting in this law. Explanation 1, under Section 77 of the R P Act, 1951 was effectively repealed, removing exemptions which made a mockery of election expenditure ceiling; full tax exemption was made available to all individual and corporate donors for political contributions; disclosure of all contributions of Rs 20,000 or more was made compulsory; and a provision was made to give free air time to all recognized parties in all channels, including local cable networks. The last of these provisions has not come into effect as the rules have not been made for over two years! Once fully implemented, tax-free contributions and free airtime creatively used in public and private channels will substantially meet the legitimate election campaign requirements. In any case, public funding will have to be within the ceiling prescribed by law (Rs 10 lakhs for Assembly and Rs 25 lakhs for Lok Sabha in most states). Therefore, public funding, though desirable, is of marginal added value.

Second, the high cost of elections is not for legitimate campaigning purposes. Most estimates indicate that about Rs 3 to 5 crores is spent by candidates for Lok Sabha and upto Rs 1 crore for Assembly in many states. In a cycle of five years, about Rs. 10,000 crore is spent on Assembly and Lok Sabha elections. While about 30% of it is legitimate campaign cost, the rest is spent illegitimately to buy votes, bribe officials and hire muscle men. This large expenditure does not necessarily guarantee victory, but strictly lawful means and modest expenditure guarantee defeat in most cases! Any public funding can only help meet the legitimate campaign costs, and does not address the vast, growing illegitimate expenditure.

Why is so much money spent for illegitimate purposes? The answer lies in the nature of our first-past-the-post (FPTP), winner-take-all electoral system in a poor country. Generally, about 90% of the vote is cast on the basis of the party’s image and appeal, or anger against rival parties. But the marginal vote that a candidate manages to secure is the key to victory. Therefore parties, in their desperation, nominate candidates who can muster the marginal vote. Given our conditions, the winning vote to trump the rival is mobilized by money and liquor, caste, muscle power, and strong family roots in politics. This makes parties dependent on local fiefdoms and money bags. Often, both the leading parties deploy similar candidates. In a system of compensatory errors, the misdeeds of each are neutralized by the other, and the aggregate outcome does seem to be broadly reflective of public mood. But given the distortions of candidate nomination, huge, unaccounted expenditure, and unholy means deployed, no matter which candidate or party is elected, the quality of governance is inevitably perverted.

Politics has thus become big business demanding multiple returns. Transfers, contracts, police cases and influence peddling are the chief sources for ruling party legislators. MP or MLA LADS, cash for questions, constituency level public works, and nuisance value are the sources of income for the opposition legislators. Left parties are generally exempt from this, and so are the many honourable politicians of integrity in other parties, who are struggling against great odds to survive in public life with honesty. When the incentives in the political system are grossly distorted, no amount of public funding will address the crisis.

What, then, is the answer? We need to eliminate the importance of the marginal vote in elections. 101 democracies world-wide have party list systems with some form of proportional representation. Only 47 have FPTP system, and many like New Zealand, Sri Lanka, and even Britain (in regional and European parliament elections) have given it up. Once we switch over to multi-member constituencies based on party lists, candidate choice will improve and money power will be irrelevant, as success is not based on marginal vote. This only requires a simple law, as the Constitution permits it. In fact, in 1952 and 1957, we accommodated SC and ST reservations in multi-member constituencies in India.

Will parties listen? Congress, BJP and Left parties have a lot to gain by list system. Already, in most large states the national parties are getting marginalized, yielding space to local parties. This is because their modest vote share does not yield electoral success, and therefore many voters switch loyalties quickly. All parties have stakes in political reform. Rarely do we have a solution which is good both for the nation and the parties. If nothing else, enlightened self interest should propel our parties to reform the system and clean up politics. Symbolic and ritualistic responses will not do.

Politics of Arbitrage

2005-12-29T22:43:00.000+05:30

The Concise Oxford Dictionary defines arbitrage as ‘the buying and selling of stocks or bills of exchange to take advantage of varying prices in different markets’. Politics, among other things, are the ‘activities concerned with the acquisition or exercise of authority or government’.

Two painful events – the brutal murder of Manjunath, a bright, young, upright IOC Sales Officer, by the Diesel adulteration mafia, and the expose of several Members of Parliament demanding and accepting money for asking questions in the House – have demonstrated how arbitrage has taken a hold over our politics and state-controlled business. In many ways, both events are linked, and lay bare the distorted incentives in politics and the grievous consequences the nation faces.

Let us take the Manjunath murder. Behind the tragedy and crime lie profiteering, dangerous fusion of crime with business in some sectors, political patronage in creating commercial opportunities, and the perverse role of the state. The proximate cause of Manjunath’s death may be the bullets fired by a gangster-businessman who wanted to eliminate an incorruptible official who would not tolerate adulteration of diesel with kerosene. But the real causes are more complex. First, for decades, oil dealerships have been awarded in most cases for a price, or as patronage. The state had monopoly, and ministers and their cronies converted their opportunity into profit. Second, once the dealer paid hefty bribes, he expected decent returns. But given administered pricing distorting markets and competition, the margins were inadequate to meet the hidden costs including the haftas paid to many inspectors – vigilence, weights and measures, civil supplies etc.

Third, in our anxiety to help the poor, wrong policy choices are made. Instead of providing direct subsidies through coupons or other means, price subsidies are offered on kerosene. In fact, kerosene consumption is not growing as fast as that of petrol or HSD. From 1984 to 2004, petrol consumption increased from 2.1 million tones (mt) to 8.3 mt (300%); and HSD consumption from 13.7 mt to 39.7 mt (200%); kerosene consumption increased more modestly, from 6 mt to 9.4 mt (57%). Clearly, the fuel and lighting needs of the poor are met by other fuels. And yet, vast subsidies are given in the name of the poor.

Fourth, as oil dealerships are obtained through patronage and bribery, and as margins in honest business are slim, dealers indulge in short-delivery and adulteration with subsidized kerosene. 5-10% short delivery by tampering the meters in connivance with the legal metrology officials was very common a decade ago. Lok Satta volunteers successfully stopped short delivery in 1998 by a simple technique of demanding filling of a calibrated can of known volume, instead of the fuel tank of the vehicle. This exposed short delivery, and within a fortnight the meters were set right in all the 1500 petrol stations in Andhra Pradesh, and random checks by volunteers made it sustainable. Eventually, oil companies acted with vigour and substantially reduced short delivery all over the country. But given the other compulsions of huge bribes for dealership and regular ‘rents’ paid to state officials, the demand for illegal profits was undiminished. This profiteering is made possible by adulteration of diesel with subsidized kerosene. Short delivery can be stopped by citizen assertion, but adulteration can only be suspected by using a hydrometer to measure density, and can be proved by chemical examination. The citizens are not empowered to measure density, and results of chemical analysis constitute evidence only when the samples are taken by competent authorities in the prescribed manner, and tests are conducted in authorized laboratories. Therefore proving adulteration demands great integrity and perseverance, not to speak of efficiency and fairness in the whole process, on the part of officials.

Finally, this whole causal chain led to a system of rent seeking everywhere. Public money was wasted on subsidies which never reached the poor; dealers who purchased their licenses through huge bribes fully exploited the arbitrage opportunities, and an organized system of rent-seeking was established. In this vicious cycle of corruption, most players were helpless to resist the system, as the price paid for resistance far exceeds the benefit. Manjunath payed the ultimate price.

The money-for-questions scandal is a more straight forward case of arbitrage. But the nature of our politics and the demands made by the political system are at the root of the problem. In our electoral system, the marginal vote that a candidate obtains is the difference between victory and defeat. Candidates therefore spend vast amounts, mostly illegitimately to buy the vote, bribe officials and hire muscle men to browbeat the voters. Large, illegitimate expenditure does not guarantee victory, but modest, legitimate expenditure almost certainly guarantees defeat! Trapped in this vicious cycle, candidates overspend, and once elected, need multiple returns on investment to sustain the system. Given the control over levers of state, politics is seen as an arbitrage opportunity. Money is made mostly by transfers, contracts and interference in crime investigation. MP LADS and other such direct access to state resources are rent-seeking opportunities. In general, influence peddling in decision making in government is financially very rewarding for legislators. The more desperate legislators seek money for questions.

In any system, there are always a few black sheep. But the political crisis in India is much deeper, and cannot be resolved merely by fiery denouncements and a few expulsions. Parliament and parties should wake up, and transform current politics as business and arbitrage by reforming our electoral system and eliminating the distorted incentives. We need to herald a new political culture, and make honesty compatible with politics and power.

Reflections on the Current Political Crisis

2005-12-22T12:29:00.000+05:30

The current spate of sting operations exposing MPs of various parties accepting bribes has made nationwide headlines. To dismiss the problem as one of corruption and to limit our concerns to the MPs caught accepting bribes is taking the escapist’s route, for the issue is much deeper.
The whole political system in India is founded on corruption. Crores are spent on elections. Recent estimates suggest that in a 5-year cycle, major political parties and candidates spend about Rs. 10,000 crores on elections to the Lok Sabha and State Assemblies. Most of these expenses are not legitimate campaign costs but money spent to buy votes, bribe people or hire musclemen.
Recently in the Andhra Pradesh municipal elections, (excluding the two largest cities of Hyderabad and Vishakapatnam), the cost of elections was an estimated 500-700 crores. This in a situation when municipalities in Andhra Pradesh are largely titular bodies with very few powers and resources! Kanakapura by-election in Karnataka, held about 2 ½ years ago, cost an estimated 20 crores. That by-election in fact was fought with very few stakes, as the elected member would have had less than 18 months as MP. As luck would have it, the Lok Sabha was dissolved prematurely and that tenure was further truncated! More importantly, whoever won, would have been in opposition as both Shri. DK Sivakumar of Congress and Shri. Deve Gowda of Janta Dal (S), were opposed to the that ruling NDA combine. The eventual winner Shri. Deve Gowda was believed to have been outspent by Shri. Shivakumar by a margin of 3:1. Saidapet assembly by-election in Tamil Nadu held about 2 ½ years ago also saw a phenomenal expense of about 5-10 crores.
The evidence is clear that large expense does not always guarantee victory. But modest, legitimate expenditure usually ensures defeat. Instead of blaming the politicians alone for this mess, we should look at deeper causes.
Our First-Past-The-Post system ensures victory to a candidate who garners more votes than any other rival. That is, the marginal vote a candidate brings to the table is of vital consequence in determining the outcome. As a result there is enormous competitive pressure to obtain the marginal vote, over and above the large chunk of vote the party guarantees. Therefore the candidates with abnormal and unaccounted money power, local caste clout, ability to deploy muscle power and strong family roots in politics have a decisive advantage in mobilizing the marginal vote. Understandably, all major non-left parties are compelled to nominate such candidates in order to maximize their chances of victory.
As a result, no matter which candidate or party wins, the parameters of governance remain unaltered. Most of the candidates who win are forced to invest large sums of money to get elected. Such a system is unsustainable unless multiple returns are guaranteed.
Not surprisingly, the legislators of the governing party at the state and national level have been making money mostly through transfers, contracts, influence peddling and interference in policing as their parties are in government. Members of opposition are more dependent on questions in legislature, their nuisance value and discretionary grants like MPLADS.
Candidates and parties in general are locked into this vicious cycle and they are often as much helpless victims of an inexorable process as they are willing accomplices perpetuating a corrupt and dysfunctional system.
The answers therefore lie in two broad directions:
1) Importance of the marginal vote must be eliminated
2) The legislator’s ability to influence discretionary executive decision on a day-to-day basis must be significantly curbed.
It is time that we convert the current political crisis and scandal as an opportunity for meaningful political reform to cleanse our public life. Mere expression of shock and disgust is not enough. Even expulsion of members is not sufficient. Parties, media and democracy movements must stand together to transform the process of power and evolve a new political culture which can sustain integrity and promote public good.
Lok Satta and VOTEINDIA movement are working precisely in this direction. We are evolving specific political reforms to address these questions, and meaningful strategies to drive the reform agenda. (More on this shall be posted soon.)

The problem of urban transportation

2005-12-13T16:44:00.000+05:30

Absence of meaningful public service infrastructure and urban amenities has resulted in small villages getting depopulated and increased the problem of urban migration. Our cities are bursting at their seams. Providing urban amenities to rural towns maybe a possibility to curb the influx of rural people into cities, but this is no substitute for proper urban planning and development.

Urban transportation in particular continues to be a nightmare paralyzing people’s lives everyday. Flawed public policies have aggravated this urban transport crisis caused by rapid urbanization. Increasing propensity to spend on private transportation by an urban few compounded by the government’s inability to enhance public transportation has in turn caused immense difficulties to the poor.

Through this article (click here) on urban transportation published in the Financial Express, I have highlighted the issues currently plaguing urban transportation in India and placed the issue in perspective through a few statistics.

The Bihar Verdict – A Cry for a New Beginning

2005-12-09T10:39:00.000+05:30

The outcome of the Bihar elections is stunning in its scope as well as in its nature. Once again, the illiterate, long-suffering people rose above caste and religion in search of a better future, and proved the psephologists and pundits wrong. This capacity to transcend narrow loyalties and express the collective will with calm grandeur has been the saving grace of our otherwise flawed democracy. This happened in 1971, when people were fired by hope; in 1977, when they were outraged by the fetters imposed on liberties; and several times thereafter all over the country. Clearly, our democracy is vibrant, and there is hope, if only we harness these opportunities for a greater cause, and not squander them in personal aggrandizement.

Beyond the majesty of people’s will which can make or unmake governments, there are six lessons of Bihar which should be internalized in order to strengthen democracy and make politics a true instrument of people’s mobilization for public good.

First, this verdict once again proves that ultimately short-term ploys and political shenanigans are counterproductive. To take only one instance, Laloo Yadav was desperate to retain power by proxy even after people rejected his brand of politics in the earlier round of elections. Governor Buta Singh acted in the sad tradition of many governors in a blatantly partisan, self-serving and crude manner by recommending the dissolution of the newly elected legislature. The Union Cabinet acted with indecent haste and advanced disingenuous arguments to advise dissolution to the President. And the President, in a moment of poor judgment, acquiesced, instead of forcing a reconsideration of the Cabinet. The paradox is that an unstable Nitish Kumar led government with defectors and time servers would have been preferable to the now stable majority with a clear mandate to set governance right. Just desserts, indeed! The co-conspirators who wanted to perpetuate misgovernance inadvertently ended up strengthening democracy and giving a chance to Bihar to rejuvenate itself!

Second, caste and religious cards work only up to a certain point in elections. Laloo’s slogan of social justice, his steadfast advocacy of secularism, and his consistency and reliability in political alliances are commendable. His failure to deliver and his penchant for plunder must not cloud our judgment. But by equating social justice with caste assertion, and secularism with pandering to minority fundamentalism, he has done great disservice to both. The consequent fusion of caste and religion with political mobilization has torn society apart, and bred mistrust and anger. Animosity of other social groups – the most backward castes and Dalits which suffered neglect, discrimination and prejudice, made them even more determined to oust Laloo’s blatantly partisan, reckless misrule. In a complex and diverse society with enormous baggage of the past, caste cannot be ignored as a political issue. But it must be handled with integrity and sensitivity, not as a crude tool for political assertion, or else it will lead to society’s decline and political failure. That is the lesson of Laloo’s unapologetic use of the M-Y card.

The third, even more important, lesson lies within the dangers politics of identity pose to democracy. When primordial loyalties are aroused and people are actively encouraged to assert their caste and religious identities as a way of political mobilization, their real interests suffer. Their own children’s future is held captive to the search for chimeras. As a result, vote is mobilized not on the basis of real and direct gains in terms of improved opportunities and quality of life, but as a stable block of people with unswerving loyalty, motivated by anger, fear, or misplaced chauvinism. The floating vote is the key to democracy’s survival. If all people vote predictably, based on their caste and religion, we will revert to feudalism. Stagnant vote with stable majority based on ethnicity destroys all possibility of improvement, and perpetuates plunder and injustice. That is what happened in Bihar. Politics of caste identity must give way to politics of individuation, which allows people to perceive their own enlightened self-interest, and act rationally in pursuit of rule of law, education, healthcare and employment. Caste certainly is a reality that cannot be ignored, and collective neglect and discrimination on caste grounds must be effectively addressed. But politics must move from caste rigidities to individual interests if vote is to acquire a positive meaning, and democracy is to lead to prosperity and greater public good, instead of collective stagnation.

Fourth, social justice and secularism will be real only when state promotes dignity, justice and opportunities for vertical mobility. There cannot be a quest for justice without rule of law, education, healthcare, empowerment of citizens, infrastructure, and employment opportunities. A government, which ignores the real issues of people in the guise of political slogans, is merely perpetuating inequity, injustice and backwardness. We see many so-called leaders with a vice like grip over their constituencies, consciously allowing stagnation and perpetuating backwardness and underdevelopment. Their political hegemony could be challenged, if people become more enlightened! This gulf between political rhetoric and quality of governance has been endemic to our polity. Laloo Yadav merely practised it on a grand scale, covering a whole major state. Indian polity must rediscover the mission of governance in a modern society.

Fifth, past experience shows that a change of guard at the polling booth does not necessarily guarantee better outcomes. In fact, the contrary has been the pattern. Mere change of players does not mean much; we need a change in the rules of the game. Nitish Kumar must stay the course. The spirit of idealism, and the awe and respect that electoral verdicts momentarily inspire must not give way to cynical real politic. NDA has compromised as much as UPA in the Bihar elections by fielding criminals and corrupt elements. The fear of losing election, and hope of pipping past the post with the help of money and muscle power are forcing parties to cohabit with mafias, murderous gangs and extortionists. Clearly, people have more confidence in our political process than politicians and parties have in people’s good sense. Laloo in 1989 started off with the same advantages as Nitish now. But in time, idealism gave way to cynicism and plunder. In many ways, most of our politicians are not villains; they are victims of a vicious cycle. Bihar’s troubles are not of recent origin. The JP movement was largely fashioned in Bihar against corruption and misgovernance, and it finally led to emergency and the emergence of Janata. 1980’s saw Congress misrule under Jagannadha Misra. 1990’s saw Laloo’s misrule. To change course in Bihar, one election or one change of guard is not enough. The people of Bihar need sustained efforts, and the support and good will of all Indians. If UP and Bihar die, India will die, too. The fight is not for Bihar’s future alone. In a fundamental sense, India’s future is at stake.

Finally, it all boils down to one question. What kind of political culture will prevail in India? Will democracy be reduced to family fiefdoms, personalized despotism, endless plunder, extortion, politics as business, power as an end in itself, private gain, and public loss? Or will power be seen as a means to public good, and politics as service? An ugly political culture evolved over time: abuse of power became the norm, and might has become right. We need to restore rule of law and a new political culture based on constitutional values and humanism not merely in Bihar, but all over India. Large parts of India are now reduced to feudal fiefdoms, with the law of the jungle operating. There is a bit of Bihar in every state of India. In the 1830’s, the British had to raise a large army of over 100,000 to suppress the pindaris pillaging central India, and they fought a six-year war. 58 years of flawed political culture led to atavism in many pockets. It is time we transformed the nature of parties, and established a truly democratic political culture, which restores nobility to politics and purpose to governance. Bihar’s verdict is not about a party winning, and another losing; it is the anguished cry of millions for a new beginning for all of India

First World People and Third world politics.

2005-11-24T13:21:00.000+05:30

I have always believed in the ability of Indians to succeed wherever they are placed, whatever their circumstances maybe. Since the 90’s tales of Indians blossoming abroad or in India itself despite the various social, political and economic odds they are challenged with have become increasingly common. These successes are largely due to our compatriots ability to endure and adapt, coupled with their capacity to strike the right balance between our civilizational ethos and progressive social outlook.

While admiring their zeal and capabilities which are on par with people across the developed world, we all perceive the possibilities that can further open for all Indians in the coming years. But this is accompanied by doubts and concerns, as I acknowledge how far behind Indian politics is lagging when compared to the required ways of a modern democracy based on rule of law and fostering competence.

This paper, one very close to my heart, is the outcome of ruminations about the change needed in the very nature and culture of politics in the nation, so that governments and politicians are able to keep up with the dynamic people of India. Don’t our world class citizens deserve better than third world politics?

A little about me

2005-11-23T18:02:00.001+05:30

Dr. Jayaprakash Narayan is a physician by training, a public servant by choice, and a democrat by conviction. He joined the IAS in 1980. During his 16 years of public service in various capacities, he had many accomplishments to his credit. He is still remembered fondly by the people of the districts he once worked for. Some of his achievements include

Rehabilitation of 8000 youth from displaced families of the Visakhapatnam Steel Plant.
Designing the reconstruction of drainage and irrigation network in Krishna and Godavari deltas.
Strengthening the credit cooperatives and making them independent of government control.

Dr JP was involved in formulating major policy initiatives such as developing an Info‑City in Hyderabad to facilitate the growth of the software industry. Hi‑Tec City, as we all have witnessed, has grown into one of the most prominent IT hubs of India.

In spite of an impressive personal achievement, Dr. JP’s experience in government convinced him that faulty governance process is the biggest hurdle in India’s path of progress.

In order to translate his vision into practical reality, he resigned from the IAS in 1996, and with like-minded citizens formed Lok Satta Movement in 1997. Lok Satta has now emerged as India’s leading civil society initiative for political and governance reforms with wide popular base in Andhra Pradesh.

Over the last decade, Lok Satta has significantly influenced India’s democratic evolution. Some of the milestones include:

Mandatory disclosure of criminal and financial antecedents of all candidates contesting for electoral office
Political Funding Reform
Size of Council of Ministers – 91st Amendment
Anti-defection provisions
Efforts aimed at making voter registration simple
Lok Satta’s advocacy resulted in the National Health Mission, whose objective is creating universal access to healthcare over the next decade
Right to Information (RTI) Act adopted by the parliament following Lok Satta's nation-wide civil society movement
Citizen's Charters across all municipalities of Andhra Pradesh

Dr. JP had also served on the following panels.

1. The National Advisory Council (NAC) for the implementation of the National Common Minimum Programme
2. Vigilance Advisory Council
3. Second Administrative Reforms Commission constituted by the Government of India

Most of the critical governance and political reforms must be driven by political parties and not civil society alone. Lok Satta Party with Dr. JP as national coordinator was initiated as a citizens’ response to this challenge, to usher in a New Political Culture.

Please visit the website of Lok Satta Party to know more about the party

www.loksatta.org

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